News dalla rete ITA

27 Gennaio 2023

Corea del Sud


The economy grew 2.6 percent in 2022, according to an advance estimate from the Bank of Korea Thursday.     That's slower than 2021's 4.1 percent but in line with the Bank of Korea's most recent forecast.   Private spending grew 4.4 percent and government spending 4.2 percent, while construction investment fell 3.5 percent and facilities investment 0.7 percent in 2022.     “Private spending recovered in the second and third quarter as pent-up demand rose following the lifting of social distancing measures," said Hwang Sang-pil, head of the Bank of Korea’s economic statistics bureau, in a press conference held in central Seoul on Thursday.   He noted that the economy weakened in the final quarter of the year.   “Spending on durable goods also declined as demand for moving homes fell due to fewer property transactions,” he added.   Exports grew 2.9 percent to a record high last year, and imports grew 3.5 percent.   The economy shrank 0.4 percent in the fourth quarter from the previous quarter. It was the first time the economy contracted in two and a half years.     Private spending fell 0.4 percent in the fourth quarter compared to the previous quarter, while government consumption rose 3.2 percent, led by increased expenditures on goods and health care benefits.     Exports contracted 5.8 percent in the fourth quarter on quarter as the export of goods, including semiconductors and chemical products, decreased. Imports declined 4.6 percent due to decreased imports of crude oil and basic metals.     Whether Korea’s GDP will stay negative in the first quarter remains uncertain.   “Exports are sluggish, but private spending is seen to be increasing on year due to the rise of credit card spending,” Hwang added. “At this point, it’s difficult to determine whether the growth in the first quarter will be positive or negative.”   The country reported a $10.26 billion trade deficit through Jan. 20 this year, according to Korea Customs Service last week. Exports fell 2.7 percent on year, while imports jumped 9.3 percent.     “The growth can swing back to positive in the first quarter,” said Finance Minister Choo Kyung-ho at a meeting held in central Seoul Thursday. He cited China’s reopening of its economy.   “Our economy is projected to go through very difficult times due to the global economic contraction, but will gradually recover as we head towards the second half of the year on the recovery of global economy and semiconductor industry.”   Choo added the government will focus policy on innovating regulations and offering tax benefits to help revive exports and investment.     “Korea’s economy will go through difficult times in the first half of the year due to sluggish export and the global economic slowdown,” central bank Gov. Rhee Chang-yong said in the press conference earlier this month.     Korea's gross domestic income fell by 1.1 percent last year from a 3.1 percent rise in 2021.   (ICE SEOUL)