South Korea’s central bank has warned that unless the nation tackles the climate crisis, its economy will shrink 21 percent by the end of the century.

In a report released Monday, the Bank of Korea said in the absence of policy changes to address the climate crisis, the annual average nationwide temperature will rise six-point-three degrees Celsius and precipitation will increase 16 percent in the period between 2081 and 2100 compared with between 2000 and 2019.

The impact of the climate crisis is expected to grow more severe after 2050, with the gross domestic product falling by 21 percent compared with its performance in a baseline scenario. 

Average growth is forecast to drop zero-point-three percentage point annually if there are no policy changes.

If steps are taken to keep the rise in global average temperatures no more than one-point-five degrees Celsius warmer than preindustrial levels, the GDP is predicted to fall 13-point-one percent between now and 2050 before slowing to a ten-point-two-percent drop by 2100. 

Average growth will likely drop to zero-point-14 percentage point a year in that case.

While producer prices in the absence of any climate response are expected to be one-point-eight-percent higher than in the baseline scenario, they are actually projected to be one-point-nine percent higher as production costs are likely to rise due to carbon pricing policies.