The economy contracted by 1.0% in 2020 due to the COVID-19 pandemic. It was the largest decline since the 1997–1998 Asian financial crisis. While the country did not impose stringent lockdowns, COVID-19 still disrupted demand, as private consumption fell 5.0% due to physical distancing measures and restrictions on mobility. Both exports and imports declined, given the drop in global trade during the first half of 2020. Meanwhile, public consumption slightly eased the impact, as the government provided subsidies and transfers. Industry and services contracted in 2020. In line with the expected global recovery, the economy is forecast to grow by 3.5% in 2021 and 3.1% in 2022.
|Composite Stock Price Index 1||2.0 (Oct21)||3.0||2.0|
|Broad Money Growth 2||12.9 (Aug21)||12.9||11.5|
|Headline Inflation Rate 3||2.5 (Sep21)||2.6||1.0|
|Industrial/ Manufacturing Production Growth Rate 3||1.4 (Sep21)||6.0||3.0|
|Merchandise Export Growth 3||24.0 (Oct21)||24.0||16.8|
|Exchange Rate Index 4||120.5 (Oct21)||119.3||116.7|
|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.|
Initiatives / FTAs
ADB Working Paper Series4 items
on Regional Economic
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