Korea

Consumer spending picking up
Private consumption is now recovering from the protracted adjustment following the collapse of the household credit bubble in 2002 and exports have begun to pick up. These factors are projected to boost economic growth from 4% in 2005 to around 5% in 2006- 07. Underlying inflation is expected to increase to the mid point of the central bank’s 2.5% to 3.5% per cent target zone in the context of stronger growth and higher energy prices.
Monetary policy should focus on the medium-term inflation target, accompanied by a flexible exchange rate policy. Concerns about rising housing prices in some parts of the country should be addressed through tax measures and policies to increase supply. Further reforms are needed to address the structural causes of weak domestic demand, notably household debt delinquency.
Population (000s), 200448 082
Area (000 sq km)100
CurrencyWon
GDP (Billion USD), 2004679.7
Life expectancy at birth (Women, Men), 2002 80.4, 73.4
Total labour force (000s), 200423 370
Government typeRepublic
Indicators% change unless otherwise indicated
200520062007
GDP growth3.95.15.2
Household savings ratio5.35.35.4
Consumer price index2.83.33.4
Short-term interest rate (%)3.64.45.4
Unemployment rate (%)3.83.73.8
General government financial balance
(% GDP)
-0.20.00.2
Current account balance (% GDP)2.11.61.5
Source: OECD© OECD Observer, No. 252/253, November 2005


Economic data

GDP growth: -1.8% Q1 2020/Q4 2019
Consumer price inflation: 0.9% Apr 2020 annual
Trade (G20): -4.3% exp, -3.9% imp, Q1 2020/Q4 2019
Unemployment: 8.4% Apr 2020
Last update: 9 July 2020

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