Selangor Journal
The skyline of central Seoul is seen during sunrise in Seoul, South Korea, on September 2, 2013. — Picture by REUTERS

South Korea’s economy grows 4 pct in 2021, highest in 11 years

SEOUL, Jan 25 — South Korea’s economy posted the highest growth rate in 11 years as consumption and exports bounced back from the pandemic-caused slump, central bank data showed Tuesday.

The gross domestic product is estimated to have grown four per cent in 2021, marking a turnaround from a year earlier when the economy contracted 0.9 per cent, the worst performance since 1998, Yonhap news agency reported data from the Bank of Korea (BOK) said.

The 2021 growth rate marked the highest tally since 2010 when the economy expanded 6.8 per cent. It also met the central bank’s annual growth outlook.

In November, the BOK predicted the country’s economy will grow four per cent in 2021 and 3 per cent in 2022. The central bank will announce its updated growth outlook next month, it said.

For the fourth quarter, the economy is estimated to have grown 1.1 per cent, accelerating from the previous quarter’s 0.3 per cent gain, the data showed.

South Korea has sought to bolster the economy, which has been hit hard by the coronavirus pandemic and toughened social distancing curbs, by expanding government spending, including two extra budgets and providing relief grants to people, according to Yonhap.

Private consumption expanded 3.6 per cent last year, turning around from the previous year’s 5 per cent contraction.

Facility investment gained 8.3 per cent, compared with a 7.1 per cent advance tallied a year earlier. Investment in construction, however, shrank 1.5 per cent, worse than a 0.4 per cent decline a year earlier.

It added that government spending rose 5.5 per cent last year, higher than the previous year’s five per cent gain.

Exports jumped 9.7 per cent, bouncing back from a 1.8 per cent contraction in 2020, driven by brisk overseas sales of semiconductors and oil-related products.

Imports also rose 8.4 per cent, compared with a 3.3 per cent decline registered a year earlier as purchases of crude oil increased, the data showed.

— Bernama

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