This Year, Per Capita Income Reaches $35,000... Economic Scale Doubles in 15 Years

Housing Prices and Inflation Burden... Gap from Public Perception

[Asia Economy Reporter Jang Sehee] This year, South Korea's per capita Gross National Income (GNI) is expected to exceed $35,000. The nominal Gross Domestic Product (GDP), which represents the size of the economy, is projected to surpass 2,000 trillion won for the first time. Considering that the GDP reached 1,000 trillion won in 2006, the economy has doubled in size over 15 years. However, experts advise that efforts to increase the sense of economic improvement are as important as the growth in economic indicators.

A senior government official stated on the 30th, "Despite the COVID-19 situation, this year's per capita GNI is expected to exceed $35,000," adding, "Annual growth of over 4% also seems achievable." Earlier, the Ministry of Economy and Finance mentioned in the 2022 Economic Policy Direction that the figure was expected to approach $35,000 this year, but this statement provided a more concrete possibility of reaching it.

The increase in per capita GNI is largely due to steady exports and improved corporate earnings despite the resurgence of COVID-19. The per capita GNI surpassed $10,000 in 1994, $20,000 in 2006, and $30,000 in 2017.

Last year's nominal GDP of 1,933 trillion won is expected to exceed 2,000 trillion won for the first time this year. Asia Economy estimated this figure with expert assistance, considering 4% growth, a GDP deflator of 2.2% (a comprehensive inflation indicator), and exchange rate trends. An expert involved in the estimation stated, "It is difficult to specify an exact value due to variable factors." Nominal GDP represents the size of a country's economy and is used as a comparative indicator between countries.

Despite improvements in indicators, the sense of economic improvement remains low. Professor Kim Taegi of Dankook University's Department of Economics said, "While nominal GDP and per capita GNI have reached their highest levels, housing prices and inflation have risen together, so the economy as felt by the public is still in a poor state," adding, "Growth and economic stimulus policies need to be made tangible to the public."

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