South Korea’s per capita income rises to $35,000 in first increase in 3 years

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South Korea’s gross national income (GNI) per capita hit a new record high of $35,000 last year in the first increase in three years, helped by economic growth of 4.0% and a value of the won stronger against the US dollar.

According to data released by the Bank of Korea (BOK) on Thursday, the country’s GNI per capita rose 10.3% year on year to $35,168 in 2021. In local currency, GNI per capita gained 7% to reach 40.25 million won ($33,466).

Korea’s GNI per capita exceeded $30,000 for the first time in 2017 and reached $33,564 in 2018. Over the next two years, however, that figure fell to $32,204 and $31,881, respectively. Last year, however, Korea’s GNI per capita managed to rise thanks to the economic rebound from the 2020 recession, the first year of Covid-19, and a 3% gain in the Korean won against the banknote. green.

“What is remarkable is that the GNI per capita has reached more than $35,000 in four years after reaching $30,000 in 2017,” said Hong Nam-ki, Vice Prime Minister and Minister of Foreign Affairs. economy and finance. “This is telling progress given that two of the four years were under the influence of Covid-19.”

Korea’s real gross domestic product (GDP) rose 4 percent last year, unchanged from the preliminary figure released in January. Korea’s economy in the fourth quarter grew 1.2% from the previous quarter, up from previous data of 1.1%.

In the October-December period, exports increased by 5%, driven by major semiconductors, coal and petrochemicals, and imports by 4.8%, driven by crude oil and chemicals . Private consumption increased by 1.6%. Spending on durable goods like automobiles fell, but spending on semi-durable goods like clothing and services rose.

Government spending also rose 1.3% in the fourth quarter, the data showed, and investment in construction by 2.9%, while investment in facilities fell by 0.7%.

The manufacturing sector increased by 1.1% in the fourth quarter, construction by 2.4%, services by 1.4% and agriculture, forestry and fishing by 1.5%.

Compared to January’s preliminary data, the services sector added 0.1 percentage point and goods exports 0.4 percentage points while investment in facilities fell 0.1 percentage points.

Korea’s nominal GDP, which reflects prices, reached 2.057.4 trillion won in 2021, up 6.4% from a year earlier.

The GDP deflator – which divides nominal GDP by real GDP – rose 2.3% year-on-year in 2021.

Korea’s GDP ranked 10th last year, remaining unchanged from a year ago.

“Exports remain strong but overall economic uncertainties remain high due to the omicron virus affecting small businesses and traders, the supply chain setback, global inflation and the acceleration of monetary policies in the major countries, in addition to the worsening crisis in Ukraine,” Hong said.

By Lee Eun-joo

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]

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