AEIR 2017

Economic growth was higher than expected in 2017. Sustained global growth, in turn, drove the Republic of Korea’s exports and investment upward. This resulted in a 3.1% growth in 2017 from a 2.8% growth in 2016. Apart from positive global developments, the improved political backdrop in the country and warmer relations with the People’s Republic of China supported growth. Investment accelerated by 8.6% in 2017, as machinery and equipment investment rebounded and construction investment accelerated. This is the highest annual growth since 2000 and the biggest source of GDP growth.

Growth is expected to ease in the next couple of years, with GDP expansion projected at 3.0% and 2.9% in 2018 and 2019, respectively. This continued growth could very well help the country achieve a milestone in its per capita income. Estimates are at $30,000 and this establishes the Republic of Korea as a developed economy.

Source: Asian Development Outlook 2018, ADB.
Latest Month-Ago Year-Ago
Composite Stock Price Index 1 2.0 (Aug18)2.0 2.0
Broad Money Growth 2 6.8 (Jun18)6.8 6.5
Headline Inflation Rate 3 1.4 (Aug18)1.5 2.6
Industrial/ Manufacturing Production Growth Rate 3 1.2 (Jul18)0.2 2.4
Merchandise Export Growth 3 8.7 (Aug18)8.7 6.2
Exchange Rate Index 4 114.2 (Aug18)114.4 115.3
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.