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Bank of Korea (BOK) Gov. Lee Ju-yeol speaks during a virtual press conference at the central bank in Seoul on Feb. 25, 2021, in this photo released by the BOK. (BOK) |
South Korea's post-pandemic economic recovery depends on the successful rollout of COVID-19 vaccines, and economic growth is likely to be sluggish before herd immunity is achieved, the head of the Bank of Korea (BOK) said Wednesday.
"Many people believe that the distribution of vaccines could get us out of a long tunnel of the new coronavirus," BOK Gov. Lee Ju-yeol said at a forum in Seoul.
However, Lee said there are "dangerous factors" that threaten solid economic recovery, citing higher uncertainties over the spread of the virus.
South Korea, which began vaccinations last month, aims to reach herd immunity by November.
About 620,000 people, or 1.24 percent of the nation's 52 million population, have been administered with vaccines so far.
Lee expected the nation's economy to stage a modest recovery, supported by exports and investment.
"The degree (of recovery) is significantly affected by the spread of COVID-19 and the distribution of vaccines," Lee said.
South Korea's economy contracted 1 percent last year, marking the worst performance in over two decades, but it appears to have returned to a growth track on the back of a mild recovery in exports.
Exports rose 9.5 percent in February from a year earlier to extend their gains for the fourth consecutive month on robust shipments of chips.
Exports came to US$44.8 billion last month, compared with $40.9 billion a year earlier, according to the data compiled by the Ministry of Trade, Industry and Energy.
Still, weaker labor markets have weighed on an economic recovery. Earlier in the day, South Korea reported job losses for the 12th straight month in February as the new coronavirus pandemic continued to deal a blow to the job market.
The number of employed people reached 26.3 million last month, 473,000 fewer than a year earlier, according to the data compiled by Statistics Korea.
The country has reported job losses every month since March 2020 due to the fallout of the COVID-19 pandemic. (Yonhap)
