The Strategist

South Korea's Central Bank reports sharp decline in GDP growth

01/26/2023 - 06:35

According to figures from the Bank of Korea, South Korea's gross domestic product (GDP) growth in 2022 was 2.6 percent, less than half the 4.1 percent increase in 2021. Imports and exports decreased, and building investment slowed even further.

Republic of Korea via flickr
Republic of Korea via flickr
The South Korean central bank reported on Thursday that the country's GDP increased by 2.6 percent in 2022 as opposed to 4.1 percent annually in 2021. It hasn't been this low since the GDP contracted by 0.7 percent that year due to the coronavirus outbreak.

Export and import growth decreased from 10.8% and 10.1% in 2021 to 2.9% and 3.5% in 2022, respectively.

Investments in the construction industry decreased negatively from -1.6% in 2021 to -3.5% in 2022.

Construction and services both increased by 1.9% and 0.8%, but manufacturing decreased at an annualized pace of 4.1%.

Meanwhile, as trade terms improved, the nation's gross national income (GNI) increased by 0.1%.