The economy is 'reeling' due to the aftermath of martial law... "This year's growth rate is 1.6-1.7 percent."

[Anchor]
Our economy was directly hit by the aftermath of the December 3 emergency martial law.

The Bank of Korea forecasts growth to be more than 0.2%p lower this year than previously forecast as domestic demand shrinks.

I'm reporter Lee Hyungwon.

[Reporter]
The Bank of Korea has released its economic growth forecast for this year as of this month.

In November last year, we forecast our growth rate to be 1.9% this year,

This time, we lowered it to 1.6 to 1.7%.

The unprecedented December 3 emergency martial law lowered the growth rate by more than 0.2%p in just two months.

BOK sees unexpected martial law outbreak after November's economic outlook,

There was a great need to diagnose the impact of this political uncertainty on our economy and share it internally and externally.

This is the background of the unusually detailed figures before officially announcing the revised economic forecast on the 25th of next month.

[Lee Chang-yong / Governor of the Bank of Korea (last 16th): To inform you that we are currently thinking this way about the impact of the political risks of martial law on the economy, I think it is an important responsibility in the Bank of Korea..]

The growth rate in the fourth quarter of last year was also forecast to be below 0.2% from the previous forecast of 0.5%.

As a result, the annual growth rate is expected to be between 2% and 2.1%, below the previous 2.2%.

The Bank of Korea explained that it was the result of the faltering domestic demand, including consumption, as the plane disaster coincided with the political uncertainty triggered by martial law.

In fact, the economic sentiment index hit its worst level in more than four years in December last year.

[Lee Chang-yong / Governor of the Bank of Korea (last 16): The fourth quarter of last year has already been affected by martial law. How will the economic growth rate change next year after the first quarter of this year be determined by how to use fiscal policy more and whether the Constitutional Court (impeachment trial) process will normalize..]

The central bank stressed that the forecast for next month may vary depending on the government's stimulus measures, such as an extra budget, the timing of resolving political uncertainties and the development of the new U.S. government's economic policies.

I'm Lee Hyungwon of YTN.


Video editing: Lee Jung-wook
Design: Lee Won-hee