The Organization for Economic Cooperation and Development(OECD) has revised down its annual growth outlook for South Korea by 0-point-2 percentage point.
In the interim projections announced on Wednesday, the OECD predicted that Asia’s fourth largest economy will contract by one percent this year.
In June of this year, the OECD projected South Korea's economy to shrink by 1.2 percent in 2020. But in August, the OECD revised the outlook to a 0.8 percent contraction under the premise that there is no resurgence in COVID-19 infections. This time, the OECD has lowered the outlook for this year by another 0-point-2 percentage point.
A resurgence in COVID-19 cases in the Seoul metropolitan area since mid August and the ensuing moves by the government to implement stricter social distancing rules appeared to have been factored into the latest revision.
The OECD, however, maintained its outlook for South Korea’s 2021 growth rate at three-point-one percent.