South Korea's potential economic growth rate for this year was estimated to have dropped.  

According to the Organization for Economic Cooperation and Development(OECD) on Tuesday, the country's potential growth rate for 2020 is estimated at two-point-five percent, down point-two percentage points from a year earlier.

A potential growth rate refers to the maximum possible rate an economy can grow without triggering inflation.

South Korea posted one of the sharpest drops in the rate among OECD members, with only Turkey, Ireland and Iceland witnessing steeper drops.

The OECD estimated the country's potential growth rate in 2021 at two-point-four percent.

The rapid drop in the rate is attributed to a decrease in the working age population and productivity.