South Korea's economic growth rate has nearly halved in the past two decades due to low productivity and regulations, a local think tank said Thursday.

South Korea's economy grew an average of 5 percent between 2001 and 2005 before falling to 2.7 percent during the 2016-2019 period, the Korea Economic Research Institute (KERI) said in a statement.

South Korea ranked fifth among the Organization for Economic Cooperation and Development, a group of 36 mostly rich and advanced nations, in terms of growth decline during the cited period.

South Korea followed Latvia, whose economic growth fell 5.1 percent, Lithuania, with a decline of 4.1 percent, Estonia, with a 3.3 percent decline, and Greece with a 2.7 percent drop during the cited period, it said.

The institute said South Korea needs to enhance productivity at manufacturers, generate new industries, and ease regulations to maintain economic growth amid challenges over a declining working age population. (Yonhap)