Seoul, 25 January 2022 (TDI): Despite the ongoing effects of the pandemic, South Korea has continued to show persistent positive economic growth. Gross Domestic Product, consumption, and exports all witnessed sizeable gains.
According to data published by the Bank of Korea, GDP grew 1.1% in the fourth quarter of 2021 and annually expanded 4.0% in 2021, which is the highest the growth rate has been for 11 years. Gross Domestic Income (GDI) decreased by 0.5% compared to the previous quarter.
Private consumption increased by 1.7% as expenditure on services like accommodation, transportation and restaurants increased. Government consumption also saw an increase of 1.1%, while construction investment expanded by 2.9%, this was due to an increase in civil engineering and building construction. Investment for facilities contracted by 0.6% due to an influx of new machinery.
Exports witnessed an impressive gain. There was an overall increase of 4.3% as exports of goods such as coal and petroleum products, crude oil and chemical products, and semiconductors increased.
▼ 4Q and Annual GDP, 2021 (Advance Estimate)https://t.co/BuqjK7X0hn
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As far as production is concerned, agriculture, fishing, and forestry increased by 1.3% as a result of better crop yields over previous years. Manufacturing improved by 1.1% this was fueled by an increase in electronic, computer, optical, and electric equipment.
Construction expanded by 2.2% while services grew by 1.3%, this was due to an increase in wholesale and retail trade and accommodation.
Real GDI grew by 3.0%. As terms of trade worsened due to a rise in the price of crude oil. GDI was well below the GDP.
Methods of Measurement
The Bank of Korea estimated these figures by first deriving nominal value-added by the values of output and intermediate input and then subtracting the value of intermediate input from that output. Expenditure statistics are measured using raw data on the amounts of money spent on final products.