Last Year’s Per Capita Gross National Income $31,755... Declines for 2 Consecutive Years (Update)

Bank of Korea Announces '2020 Q4 and Annual National Income (Preliminary)' on 4th
Q4 Growth Rate 1.2%... Revised Upward by 0.1 Percentage Points from Preliminary Estimate

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Last year, the Gross National Income (GNI) per capita decreased, marking a decline for the second consecutive year. Although the $30,000 range was maintained, the decrease in Gross Domestic Product (GDP) due to the COVID-19 pandemic made it impossible to prevent a drop in GNI per capita. This is the first time since the financial crisis in 2008 and 2009 that GNI per capita has declined for two consecutive years.

According to the "2020 Q4 and Annual National Income (Provisional)" report released by the Bank of Korea on the 4th, GNI per capita was $31,755, down 1.1% from the previous year. In 2019, GNI per capita had decreased by 4.3% to $32,115.

GNI per capita is an indicator showing the average living standard of a country's citizens, calculated by dividing nominal gross national income by the estimated population from Statistics Korea and reflecting the won-dollar exchange rate. South Korea first entered the $30,000 range in 2017 with $31,734, increased to $33,564 in 2018, but then decreased again in 2019.

In Korean won terms, GNI per capita was 37,473,000 won, a 0.1% increase from the previous year.

Nominal Gross Domestic Product (GDP), adjusted for inflation, was 1,924.5 trillion won last year, up 0.3% from the previous year. The nominal GDP growth rate exceeded the real GDP growth rate (-1.0%). With the improvement in nominal GDP growth, the GDP deflator (nominal GDP/real GDP) recorded a 1.3% increase last year. Although the GDP deflator was negative at -0.9% in 2019, it reversed to positive growth last year.

The annual total savings rate last year was 35.8%, up 1.2 percentage points from 34.7% the previous year, and the gross domestic investment rate rose 0.2 percentage points from 31.2% to 31.4%.

Meanwhile, the provisional real GDP growth rate for Q4 last year was 1.2%, revised upward by 0.1 percentage points from the preliminary estimate of 1.1%. This upward revision was due to simultaneous increases in exports (0.3 percentage points), facility investment (0.1 percentage points), and private consumption (0.1 percentage points).

Private consumption decreased by 1.5% as both services and goods declined, and government consumption also fell by 0.5%, mainly due to reduced spending on goods and health insurance benefits. Construction investment increased by 6.5% due to growth in building and civil engineering construction, whereas facility investment decreased by 2.0% as machinery increased but transportation equipment declined.

Exports increased by 5.4%, centered on semiconductors and chemical products, while imports rose by 2.2%, driven by increases in machinery and equipment and primary metal products.

This content was produced with the assistance of AI translation services.