AEIR 2018

The Republic of Korea’s GDP expanded by 2.8% in the first half of 2018, underpinned by buoyant consumption and external demand. Private consumption grew by 3.2% spurred on by higher income from wage hikes and strong consumption by tourists from the People’s Republic of China (PRC). Government consumption increased by 5.3%, due to the implementation of programs on job creation and expanded social benefits.

While the economy is still expected to grow for the next two years, forecasts (2.9% for 2018 and 2.8% in 2019) are slightly dampened by headwinds from tariffs levied by both the PRC and the United States. Exports will likely suffer due to this, and consumption may not boost growth, despite continued supportive fiscal policies.

Source: Asian Development Outlook 2018 Update, ADB.
Latest Month-Ago Year-Ago
Composite Stock Price Index 1 2.0 (Oct18)2.0 2.0
Broad Money Growth 2 6.4 (Aug18)6.4 6.7
Headline Inflation Rate 3 2.0 (Oct18)1.9 1.8
Industrial/ Manufacturing Production Growth Rate 3 -4.8 (Sep18)1.7 7.4
Merchandise Export Growth 3 22.7 (Oct18)22.7 -8.2
Exchange Rate Index 4 115.4 (Oct18)114.1 115.5
1 Monthly average, local index.
2 %.
3 y-o-y, %.
4 Monthly average, January 2006 = 100, $/local currency.
Source: Bloomberg LP; CEIC database; National Statistical Office; Korea Customs Service.