Last Year, Per Capita National Income $35,168... Up 10.3% YoY (Comprehensive)

by Seo Sojeong

Published 03 Mar.2022 08:16(KST)

Updated 03 Mar.2022 08:31(KST)

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Economic Recovery and Won-Dollar Exchange Rate Decline Lead to Rebound After 3 Years

[Asia Economy Reporter Seo So-jeong] Last year, South Korea's per capita Gross National Income (GNI) surpassed $35,000. The economy rebounded from the impact of COVID-19 and the won-dollar exchange rate declined, leading to a recovery after three years.

The real Gross Domestic Product (GDP) growth rate for the fourth quarter was revised upward by 0.1 percentage points (p) from the preliminary figure, but the annual growth rate remained at 4.0%.

According to the "2021 Fourth Quarter and Annual National Income (Provisional)" statistics released by the Bank of Korea on the 3rd, last year's per capita GNI was $35,168, a 10.3% increase from 2020 ($31,881).

South Korea's per capita GNI first entered the $30,000 range in 2017 at $31,734. It then increased to $33,564 in 2018, but declined for two consecutive years to $32,204 in 2019 and $31,881 in 2020.

The provisional annual real GDP growth rate for last year was 4.0%, the same as the preliminary figure released in January. However, the fourth quarter growth rate (compared to the previous quarter) rose from 1.1% to 1.2%.

By expenditure category, private consumption increased by 1.6%, with durable goods (such as passenger cars) decreasing, but services (accommodation, food, entertainment, culture, etc.) and semi-durable goods (medical care, etc.) increasing.

Government consumption rose by 1.3%, mainly due to spending on goods and health insurance benefits.

Construction investment increased by 2.9%, with both building and civil engineering construction investments rising.

Facility investment decreased by 0.7% due to a decline in machinery. Exports increased by 5.0%, centered on semiconductors, coal, and petroleum products, while imports rose by 4.8%, driven by crude oil and chemical products.

The nominal GDP, which reflects price changes, reached 2,057.4 trillion won last year, up 6.4% from the previous year. Due to the decline in the won-dollar exchange rate, the increase in US dollar terms (1,797.8 billion dollars) was even higher at 9.7%.