First quarter GDP revised down 0.1 point to 3.0 percent

Finance

Published: 08 Jun. 2022, 17:30

First quarter GDP revised down 0.1 point to 3.0 percent

Hwang Sang-pil, director general of the central bank’s economic statistics department, speaks at the press conference held in central Seoul on Wednesday. [BOK]

The central bank revised first quarter growth down 0.1 percentage points from its April report to 3.0 percent .

Exports of goods and services grew 7.3 percent on year on strong sales of semiconductor and chemical products, down from 9.0 percent in the earlier report, the Bank of Korea said on Wednesday. Imports of goods and services increased 5.3 percent as the purchase of machinery declined, down from 7.9 percent.

Private spending in the first quarter was up 4.3 percent on year, compared to the earlier 4.5 percent. Government spending was up 6.6 percent in the same period, compared to the 6.5 percent reading.

The Bank of Korea forecast Korea’s GDP to grow 2.7 percent this year.

If Korea “grows 0.5 percent every quarter, reaching 2.7 percent growth will be possible,” said Hwang Sang-pil, director general of the central bank’s economic statistics department at the press conference in central Seoul on Wednesday. “Though exports may slow from the weak growth of key countries, private spending is projected to recover from lifted pandemic-related measures and the passing of a supplementary budget.”

Korea's economy grew 4.1 percent in 2021, according to a preliminary report.

Gross National Income (GNI) declined 0.4 percent on year in the first quarter to 475 trillion won ($380 billion). The central bank did not reveal the GNI per capita for the first quarter.

The GNI per capita in 2021 was 35,373 dollars, up 10.5 percent on year.

Hwang said economic growth and a stronger won contributed to the rise in GNI per capita in 2021.

The won hit 1,080.30 won in January 2021 but has rapidly depreciated since, now down about 15 percent.

BY JIN MIN-JI [jin.minji@joongang.co.kr]