A recent survey has shown that South Korean firms held the grimmest outlooks on the economy in seven years due to rising geopolitical tensions and slumping growth in the global economy.

The Bank of Korea(BOK) says the Business Survey Index(BSI) among local firms was 63 for February, two points lower than a month ago and the worst since March 2009. The BSI has continued a four-month fall from October last year when it was 71.

The BSI measures the growth expectations of the economy among firms. A score of 100 or more means there are more companies that are optimistic about the economy than those pessimistic.

BOK officials said the BSI is expected to rise to 66 next month – the same value officials had predicted last month for February.

Officials added the dark economic outlooks by firms reflected falls in exports due to slower growth in China and emerging markets and rising geopolitical uncertainty due to North Korea’s nuclear test and missile launch.