South Korea experienced a significant decline in its per-capita gross domestic product (GDP) in 2022, making it the country’s third-sharpest decrease among major economies. According to data analyzed by the Bank of Korea, South Korea’s per-capita GDP fell by 8.2 percent compared to the previous year, reaching $32,142. This decline followed Japan’s 15.1 percent fall and Sweden’s 8.5 percent decrease, making South Korea’s drop the third-largest among 47 major nations.
The primary factor contributing to this decline was the weakness of the Korean won against the U.S. dollar. While South Korea’s nominal GDP in local currency increased by 3.9 percent to 2,161.8 trillion won ($1.68 trillion), the dollar-based figure experienced a significant 7.9 percent on-year fall. This decrease in the dollar-based figure was the second-largest among major nations worldwide.
In terms of per-capita GDP rankings, South Korea secured the 23rd position in 2022. Luxembourg topped the list with $125,558, followed by Norway with $106,180, Ireland with $104,237, Switzerland with $91,976, and the United States with $76,360. Italy ranked 20th with $34,109, and Japan came in at 21st with $33,864, followed by Russia with $32,410.
South Korea’s overall GDP expanded by 2.6 percent in 2022, a slower pace compared to the previous year’s 4.1 percent growth. This decrease was primarily due to weak global demand, an economic slowdown, and both domestic and international aggressive monetary tightening. To maintain growth momentum, South Korea is focusing on boosting exports and strengthening advanced industries.
Despite efforts to revive the economy, the International Monetary Fund (IMF) recently downgraded its 2023 economic growth outlook for South Korea to 1.4 percent, citing persistent challenges in the global economy. Both the South Korean government and the Bank of Korea shares the same growth projection of 1.4 percent.
These developments indicate the need for South Korea to address economic challenges and ensure sustainable growth. While the country faces significant obstacles, such as global economic uncertainties, it remains crucial for policymakers to implement effective strategies that support economic recovery and promote long-term stability.
