Korea's GDP highest in 11 years

 Korea's GDP highest in 11 years

South Korea's economy grew last year at its fastest pace since 2010 thanks to exports and construction.

The Bank of Korea (BOK) said the economy grew 4% in 2011, the highest rate in 11 years. Compared with the decline of 0.9% in 2020, the Korean economy has recovered strongly but unevenly across sectors. While exports rose by the most in 11 years and construction flourished, consumption remained limited due to social distancing orders.

Particularly in the fourth quarter of 2021, GDP increased by 4.1% year-on-year, higher than the average forecast of 3.7% according to a Reuters poll. In which, exports increased by 4.3% compared to the previous quarter.

Consumers at a shopping mall in Myeongdong, Seoul on May 28, 2020. Photo: Reuters

Consumers at a shopping mall in Myeongdong, Seoul on May 28, 2020. Photo: Reuters

Sectors such as private consumption, construction investment and services increased by 1.7%, 2.9% and 1.3%, respectively. "People are getting used to social distancing. Although activities were slower in December, the impact was smaller than before," said Hwang Sang-pil, head of BOK's economic statistics department. evaluate.

The BOK expects GDP in 2022 to grow by 3% as Asia's fourth-largest economy benefits from semiconductor exports and increased public spending, although this week's record number of positive cases poses a threat to the economy. with consumption. "Global demand for our chips is recovering, and strong exports will keep growth momentum solid," said Hwang Sang-pil.

A recent Reuters poll of 20 economists forecast South Korea's economy would grow 2.9 percent this year, below the 3 percent forecast by the BOK. On January 14, the BOK raised the reference interest rate to pre-pandemic levels and signaled it could tighten further as inflationary pressures remain strong.