SEOUL, Oct. 7 (Xinhua) -- Global rating company Fitch on Wednesday affirmed South Korea's long-term sovereign rating at "AA-" with a "stable" outlook.
Fitch said in a statement that the COVID-19 pandemic weighed on economic growth and public finances of South Korea.
However, the company noted that domestic control of the virus accompanied by a robust policy response limited the severity of the deterioration.
Fitch expected the South Korean economy to contract by a modest 1.1 percent in 2020, citing an effective COVID-19 containment strategy without the need to resort to strict lockdown measures.
The sharp global economic downturn hit the country's export and weighed on domestic investment in the first half, but domestic consumption held up well, the company noted.
South Korea's export rebounded in recent months, benefiting from surging demand for electronic products and a particularly strong recovery in China, Fitch said.
Fitch added that a gradual recovery is underway in the second half due to a broader recovery in the global economy. Enditem
