GDP in Korea
Korea - GDP (billions of U.S. Dollars)
Economic growth improves moderately in Q4
According to a preliminary reading, GDP growth increased slightly to 4.1% year-on-year in the fourth quarter, from 4.0% in the third quarter.
Private consumption increased 6.3% in the fourth quarter, coming in above the third quarter's 3.3% expansion. Meanwhile, government consumption grew at the fastest pace in over a decade, expanding 8.1% (Q3: +6.5% yoy). That said, fixed investment growth fell to an over two-year low of 1.1% in the fourth quarter (Q3: +1.5% yoy).
On the external front, exports of goods and services growth fell to 6.1% in Q4, marking the worst reading since Q1 2021 (Q3: +7.2% yoy). Conversely, imports of goods and services growth picked up to reach 9.7% in Q4 (Q3: +6.6% yoy). Overall, the external sector subtracted 0.8 percentage points from the headline figure in Q4.
On a seasonally-adjusted quarter-on-quarter basis, economic growth accelerated to 1.1% in the fourth quarter, compared to the previous quarter's 0.3% expansion. Q4's reading marked the fastest increase since Q1 of last year. Taken together, the economy grew 4.0% in 2021, rebounding from the 0.9% contraction in 2020.
Commenting on the outlook, Ho Woei Chen, economist at United Overseas Bank, said:
“The sustained growth recovery in Q4 2021 despite a pick-up in domestic Covid-19 infections in December supports a positive outlook this year. We are likely to see a more moderate impact from any resurgence in infections as countries adopt an endemic approach to live with Covid-19, given that vaccination rates have reached high levels in many countries. […] Overall, we see robust external demand (in particular for technology products), gradual recovery in private consumption as well as government support measures to keep South Korea’s growth at an average of 3.0% in 2022, in line with Bank of Korea (BOK)’s and our forecasts. Uncertainties that need to be watched include more contagious Covid-19 variants, growth slowdown in China, withdrawal of monetary accommodation by global central banks and the upcoming presidential election.”
FocusEconomics panelists see the economy growing 3.0% in 2022, which is unchanged from last month’s forecast. For 2023, they see the economy growing 2.6%.
Korea - GDP (USD bn) Data
|GDP (USD bn)||1,465||1,500||1,624||1,725||1,646|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||1.68||1.55 %||Dec 31|
|Exchange Rate||1,156||0.21 %||Dec 31|
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April 14, 2022
At its meeting on 14 April, the Bank of Korea (BOK) raised the base rate by 25 basis points to 1.50%.
April 5, 2022
Consumer prices increased 0.72% in March over the previous month, accelerating from the 0.58% rise seen in February.
April 1, 2022
The S&P Global Manufacturing Purchasing Managers' Index (PMI) came in at 51.2 in March, down from February's 53.8.
April 1, 2022
Merchandise exports jumped 18.2% in annual terms in March (February: +20.7% year-on-year).
March 31, 2022
Industrial output rose 3.9% compared to the same month a year earlier in February in seasonally-adjusted terms, which followed January's 6.6% increase.