Per Capita GNI Reaches $36,855 Last Year...Up Only 0.3% Due to High Exchange Rate (Updated)

Last year, South Korea's per capita Gross National Income (GNI) was calculated at 36,855 dollars in US dollar terms. This marks a 0.3% increase compared to the previous year and is the third consecutive year of growth.

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The provisional annual economic growth rate was recorded at 1.0%, identical to the preliminary figure announced in January. The real Gross Domestic Product (GDP) growth rate for the fourth quarter of last year was adjusted upward by 0.1 percentage points to -0.2% compared to the previous announcement.

According to statistics released by the Bank of Korea on March 10 under the title "Provisional National Income for the Fourth Quarter and Full Year 2025," last year's per capita GNI reached 36,855 dollars, representing a 0.3% increase from 2024 (36,745 dollars). In Korean won terms, it amounted to 52,416,000 won, up 4.6% from the previous year.

South Korea's per capita GNI had climbed to 37,898 dollars by 2021 but fell to 35,229 dollars in 2022 due to a sharp rise in the exchange rate. Since 2023, it has remained in the 36,000-dollar range.

The provisional real GDP growth rate for the fourth quarter of last year (quarter-on-quarter) was calculated at -0.2%. This is a slight upward revision from the -0.3% preliminary figure released in January.

This adjustment reflects the inclusion of year-end results that were unavailable for the preliminary estimate, leading to upward revisions in government consumption (by 0.7 percentage points), construction investment (by 0.4 percentage points), and exports (by 0.4 percentage points).

By economic activity, manufacturing decreased by 1.5% from the previous quarter, due to declines in transport equipment and machinery. Construction contracted by 4.5%, with both building and civil engineering construction falling. Service industries rose by 0.6%, as declines in wholesale & retail trade and accommodation & food services were offset by increases in finance & insurance, healthcare, and social welfare services.

By expenditure component, private consumption increased by 0.3% quarter-on-quarter, as consumption of goods such as passenger cars declined, but consumption of services, including medical services, increased. Government consumption grew by 1.3%, mainly due to increased spending on health insurance benefits. Construction investment decreased by 3.5%, affected by declines in building and civil engineering construction. Facility investment dropped by 1.7%, mainly due to declines in transport equipment such as automobiles.

Exports decreased by 1.7%, mainly driven by declines in automobiles and machinery & equipment, while imports fell by 1.5%, as natural gas and automobiles declined.

On an annual basis, last year's real GDP grew by 1.0% compared to the previous year, matching the preliminary figure released in January. By economic activity, the service sector continued to grow, but construction saw a significant contraction, and manufacturing growth slowed.

By expenditure component, private consumption, government consumption, and facility investment all saw wider increases, while construction investment experienced a sharp decline and export growth also slowed.

Last year, South Korea's GDP deflator rose by 3.1% compared to 2024. This rate of increase was lower than the 4.1% rise recorded in the previous year. The GDP deflator, which is calculated by dividing nominal GDP by real GDP, is a macroeconomic indicator reflecting overall price levels, including exports and imports.

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