As the decrease in exports increased, both gross national income and private consumption decreased, and the economy showed a recession in the fourth quarter of last year.
The Bank of Korea's statistics for the fourth quarter of last year announced on the 26th that private consumption declined by 0.4 and turned negative, exports decreased by 7.9%p year-on-year, and construction investment and facility investment also decreased by 3.5% and 0.7% year-on-year, respectively.
On the 25th, the United Nations Department of Economic and Social Affairs (UN DESA) announced that the global economic growth rate this year is expected to grow by 1.9% and Korea by 2.0% in the joint report of the UN-affiliated organizations, 'World Economic Situation and Prospects in 2023', indicating that the decline is greater than last year's 2.6%. In the fourth quarter of last year, real GDP decreased by 0.4% compared to the previous quarter, and annual gross domestic income (GDI) decreased by 1.1% compared to the previous year, falling below the real GDP growth rate and increased by 0.1% in the fourth quarter.
In the fourth quarter of last year, the growth rate of the manufacturing industry decreased to 1.4%, and the growth rate of the service industry decreased slightly to 4.1%, but the transportation finance and insurance industry increased by 0.8%. Decreased.
In the fourth quarter of last year, exports decreased by 5.8% in flagship products such as semiconductors and chemical products, while imports decreased by 4.6% mainly in crude oil and primary metal products.
In particular, the expansion of the decrease in exports was 8.8% compared to the previous quarter, as of January 20 this year, the decrease increased by 3.0%p.
Reuters said South Korea's GDP fell 0.4 percent in the fourth quarter from the previous quarter, and economists in their own poll had expected a 0.3 percent drop.
Regarding Korea's economic downturn, "there are signs of continued weakness in the first quarter," Reuters said.
“Economists generally define an economic recession as two or more consecutive quarters of contraction,” said Reuters.
Regarding the UK, which has suffered a large decline in household spending, the UN report said, “The economic recession began in the second half of last year, and this year’s GDP will decline by 0.8%, resulting in negative growth.”
The United Nations gave China 4.8 percent growth this year, well below the pre-pandemic average of 6 to 6.5 percent, and forecast East Asian countries to grow 4.4 percent this year, relying on China's recovery.
The UN report predicted Korea to grow by 2.0% this year and 2.5% next year, and Japan by 1.5% this year and 1.3% next year.
Deputy Prime Minister-nominee Choo Kyung-ho said on April 10 of last year, “We are trying to find a way to minimize the impact of price instability without compromising macro stabilization efforts and create a combination.” “We do it,” said a growth rate of 3%.
<Refer to Choo Kyung-ho’s Fine Adjustment of Macroeconomic High Inflation, Financial Bureaucracy’s Monopoly “National Interest,” April 11, 2022. Fiscal Expansion Due to Economic Recession Decreased Exports Causes High Inflation, May 13, 2022>