By Park Hye Ri and Kim Minji

The Bank of Korea forecasts economic growth this year will reach 3%.

In an economic outlook report released on Feb. 25, the central bank said the growth estimate for this year was the same as that made in November last year.

Due to COVID-19, the economy last year shrank 1% to post its lowest growth since 1998, when the country was rocked by the Asian foreign exchange crisis. The report, however, said exports and investment fueled by global economic recovery will ensure that Korea remains on the recovery path.

The growth forecast was based on the assumption that the pandemic eases from the year's second half. If the crisis is alleviated in the first half, the bank predicted higher growth of 3.8% but a lower projection of 2.4% if the easing comes in the first half of next year.

The report said consumer inflation this year will reach 1.3%, up from 1% last year, and the current account surplus USD 64 billion, a drop of USD 11.3 billion.

hrhr@korea.kr