South Korea showed strong gross domestic product (GDP) results at the end of 2021. The fourth quarter saw 1.1% growth, taking the full year GDP growth to 4%, marking the fastest rise in 11 years. Exports grew by 4.3% during the quarter, but imports also grew by a comparable level, meaning a weak lift in net trade income. Meanwhile, private consumption grew by 1.7%, while construction investment increased 2.9%. The service sector grew by a comparatively low 1.3%.
The results are creating some optimism for continued expansion. Overall, the Bank of Korea (BOK) is forecasting the economy to grow by 3% during 2022. There are, however, issues to be worked out, not least from the Covid-19 pandemic, to ensure the economy reaches this target.
