SEOUL, June 9 (Reuters) - South Korean central bank board member Cho Yoon-je said the economy could fall into Japan-like recession, Yonhap reported on Tuesday, adding to concerns about the outlook for Asia’s fourth largest economy.
“At the current rate, (the economy) could log growth in the zero percent range. Reforms are needed across-the-board for sustainable development of the South Korean economy,” Cho, who began his four-year term in April, told a local forum, Yonhap news agency said.
“The South Korean economy could slip into long-term recession like Japan.”
The Bank of Korea on May 28 cut interest rates to a record low of 0.50% as it warned the coronavirus pandemic would be worse for the economy than the 2008 global financial crisis.
Reporting by Cynthia Kim, editing by Louise Heavens