Further contraction expected if trade conflict intensifies: BOK

Bank of Korea forecasts South Korea's real GDP growth rate this year could fall to the mid-one percent range if international trade conflicts continue to heat up.

According to the central bank on Tuesday, the country's real GDP growth could fall by an additional point-two percentage points, from its previous outlook of one-point-nine percent, if global trade conflicts intensify.

This means that the real growth rate for this year could be one-point-seven percent.

The BOK said strengthening U.S. protectionist policy and response measures from countries like China could result in a rapid contraction in international trade.