Korea’s economy in 2023 grows at lowest level in 3 years

[Image source: Gettyimagesbank]

South Korea’s economic growth slowed to 1.4 percent in 2023, only half of the figure in 2022 and the lowest level in three years, despite improvement in the fourth quarter.

According to the Bank of Korea’s growth guidance for the fourth quarter ended December, the country’s real gross domestic product (GDP) was projected to have gained 0.6 percent from the previous quarter, adding for the fourth straight quarter after a negative growth of 0.3 percent in the fourth quarter of 2022.

In the first quarter of 2023, Korea’s economy added 0.3 percent, 0.6 percent in the second quarter, and 0.6 percent in the third quarter.

For the full year, the country’s economy grew 1.4 percent, which is in line with the projections by the BOK and the Ministry of Economy and Finance, but the lowest in three years since 2020.

In the fourth quarter, private consumption rose 0.2 percent despite a slight fall in consumption of goods, as outbound expenditures of domestic tourists grew during the period.

Government spending added 0.4 percent in the fourth quarter, and facility investment gained 3 percent on robust sales of transportation devices.

Exports grew 2.6 percent in the fourth quarter and imports rose 1 percent.

The manufacturing industry grew 1.1 percent, while the construction sector shrank 3.6 percent.

Real gross domestic income (GDI) added 0.4 percent in the fourth quarter and 1.4 percent in 2023.