The Bank of Korea(BOK) said South Korea may see a drop in annual economic growth as well as rising inflation through 2050 if countries around the world were to introduce a carbon tax.

The central bank released a report on Thursday which looked at how international response to climate change may affect the nation's macroeconomics.

The state bank projected that South Korea’s gross domestic product(GDP) would slip between zero-point-08 and zero-point-32 percentage points on average each year through 2050 due to global measures including carbon taxes. 

The report also forecast that the addition of these charges, would prompt South Korea’s inflation rate to jump by up to zero-point-09 percentage points. 

It also said responding to climate change through 2050, which is when Seoul aims to achieve carbon neutrality, will likely have a negative impact on macroeconomics. 

The central bank stressed the need to respond to risks that might emerge while going carbon neutral and to set up countermeasures that will help minimize the potential blow to economic growth and consumer prices.