Last Year, Per Capita National Income $33,745... Taiwan Surpassed Again (Comprehensive)

On the 5th, the 2023 Q4 and annual national income (provisional) briefing was held at the Bank of Korea in Jung-gu, Seoul. From left in the photo: In-gyu Lee, Head of the National Expenditure Income Team; Jeong-tae Choi, Head of the National Accounts Department; Chang-gu Kang, Head of the National Income General Team; Hyun-jung Jeon, Manager of the National Income General Team. Photo by Bank of Korea.

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Last year, South Korea's gross national income (GNI) per capita in dollar terms rebounded, increasing by 2.6% to $33,745 compared to the previous year. It was revealed that the GNI per capita, which had been overtaken by Taiwan for the first time in 20 years, reversed the trend within a year.

The preliminary figures for real gross domestic product (GDP) growth rate in the fourth quarter and for the entire year last year were recorded at 0.6% and 1.4%, respectively, the same as the flash estimates announced in January.

On the 5th, the Bank of Korea announced the '2023 Fourth Quarter and Annual National Income (Preliminary)' statistics, stating that last year's GNI per capita was $33,745, a 2.6% increase from 2022 ($32,886). In Korean won terms, it was 44.05 million won, up 3.7% from the previous year.

GNI per capita is the total income earned by a country's residents both domestically and abroad. It is considered more suitable than GDP for assessing the standard of living of the population.

South Korea's GNI per capita first entered the $30,000 range in 2017 ($31,734), increased to $33,564 in 2018, then declined for two consecutive years in 2019 ($32,204) and 2020 ($32,004). It rebounded in 2021 ($35,373) after three years, but fell again in 2022 due to a sharp rise in the exchange rate, before rebounding last year.

GNI per capita was surpassed by Taiwan in 2022 for the first time in 20 years but succeeded in overtaking it again within a year. Taiwan's GNI per capita in 2022 was $33,565, surpassing South Korea for the first time since 2002. However, the Bank of Korea reported that Taiwan's GNI per capita last year slightly decreased to $33,299 compared to 2022.

Choi Jeong-tae, head of the National Accounts Division at the Bank of Korea's Economic Statistics Bureau, explained, "Taiwan's nominal GNI growth last year was similar to South Korea's, but the Taiwanese currency showed relative weakness compared to ours, resulting in a lower national income."

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South Korea's real GDP growth rate for the fourth quarter last year (preliminary, quarter-on-quarter) was recorded at 0.6%, the same figure as the flash estimate announced on January 25.

The quarterly growth rate turned negative in the fourth quarter of 2022 but rebounded in the first quarter of last year and remained positive thereafter.

Looking at the growth rate by sector in the fourth quarter of last year, private and government consumption, facility investment, imports, and exports increased, while construction investment decreased.

Private consumption rose by 0.2%, as overseas consumption expenditure by residents increased despite a decline in goods consumption, and government consumption increased by 0.5%, mainly due to spending on goods.

Exports increased by 3.5%, centered on semiconductors, and imports rose by 1.4%, driven by petroleum products. Construction investment decreased by 4.5% due to a decline in building construction, while facility investment increased by 3.3%, mainly in transportation equipment.

Last year's economic growth rate was 1.4%, the same as the flash estimate announced in January.

South Korea's GDP deflator last year rose by 2.1% compared to 2022. The GDP deflator is a macroeconomic indicator that reflects the overall price level, including exports and imports, calculated by dividing nominal GDP by real GDP.

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