The economy reported its highest growth in a decade in 2021. After a 0.9% contraction in 2020, the economy grew by 4.0% in 2021 due to strong recovery in consumption from both private and public sectors. Success in COVID-19 containment, mass vaccinations, eased mobility restrictions, and labor market recovery bolstered private consumption. On the supply side, both services and manufacturing boosted the expansion. With the economy recovering in 2021 from a low base in 2020, growth is expected to ease to a more sustainable 3.0% in 2022 and 2.6% in 2023. It will likely be supported by higher domestic consumption, easing unemployment, and high vaccinations.
|Composite Stock Price Index 1||2.0 (Aug23)||2.0||2.0|
|Broad Money Growth 2||2.8 (Jun23)||2.8||2.0|
|Headline Inflation Rate 3||3.4 (Aug23)||2.3||5.7|
|Industrial/ Manufacturing Production Growth Rate 3||-0.8 (Dec22)||1.2||6.7|
|Merchandise Export Growth 3||-8.4 (Aug23)||-8.4||-16.4|
|Exchange Rate Index 4||134.7 (Aug23)||130.7||134.5|
|1 Monthly average, local index.|
3 y-o-y, %.
4 Monthly average, January 2006 = 100, $/local currency.
|Source: Bloomberg LP; CEIC database; National Statistical Office; Korea Customs Service.|
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