The central bank said the country's potential growth rate for 2021 to 2022 plunged to the two-percent range.

The Bank of Korea(BOK) released new estimates on Monday that took into consideration the COVID-19 pandemic, saying the potential growth rate is expected to be two percent.

The potential growth rate is the maximum possible rate an economy can grow without triggering inflation.

The rate for 2019 to 2020, meanwhile, has been revised down to two-point-two percent from the range of two-point-five to two-point-six percent estimated in August 2019.

The central bank cited structural factors, such as a plunge in the working age population, compounded by pandemic factors, including the stagnant job market and a production capacity decline in the service sector.

In comparison, the International Monetary Fund estimated the country’s 2020 to 2022 potential growth rate at one-point-eight percent while the OECD's outlook stood at two-point-four percent.