Hong Kong (CNN Business) South Korea's economy just recorded its most severe contraction since the 2008 financial crisis as the coronavirus pandemic weighed on consumer demand and exports. And the worst may not be over.

Asia's fourth-largest economy shrank 1.4% in the January-to-March period compared to the fourth quarter of 2019, according to an estimate released Thursday by the Bank of Korea. The decline was slightly better than what analysts polled by Refinitiv expected, but still the worst in more than a decade.

The economy still grew by 1.3% when compared to a year earlier. But the rate of growth was slower than the 2.3% growth that the fourth quarter experienced year-on-year.

Consumer spending declined 6.4% from the prior quarter, while exports decreased 2%. South Korea was hit early by the virus, and at one point was home to one of the largest outbreaks outside of mainland China.

Since early March, though, the rate of daily infections has slowed dramatically — the country has roughly 10,700 recorded cases to date, with 238 deaths, according to Johns Hopkins University.

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