[종합] National income per capita last year, $31,755… 2nd year↓: Bridge economy, partner in the age of 100

(Graphic = Union)

Last year, Korea’s gross national income (GNI) per capita declined for the second year. This is because the economy has sunk due to the novel coronavirus infection (Corona 19) and the won’s value has weakened.

GNI is the sum of income earned by a country’s citizens. Income earned by nationals outside the country is included, but income paid to foreigners is excluded. Divide the nominal GNI by the number of people to get the GNI per capita. Gross domestic product (GDP) is used to determine the size of a country’s economy, and per capita GNI is used to determine the standard of living. It is because the average standard of living of the people can be known only by looking at the national income per capita rather than the total national income.

According to the Bank of Korea on the 4th, the GNI per capita last year was tentatively calculated at 31,755 dollars. It was -1.1% less than in 2019 ($32,115). Converted to Korean won with the average exchange rate last year, it is 3,7473,000 won.

Korea’s per capita national income was $31,734 in 2017, which opened the era of $30,000 for the first time. It has exceeded $30,000 for the fourth year. However, it increased to $33,564 in 2018, but decreased to $32,115 in 2019, and decreased to $31,755 in 2020. Since the beginning of last year, an infectious disease has spread and the economy has stagnated. When the border was closed, trade decreased, and if people were reluctant to meet with each other, the service industry was bound to shrink. Self-employed people have been hit.

Last year, the annual real GDP growth rate was tentatively -1%, the same as the breaking news released in January. The preliminary growth rate for the fourth quarter compared to the previous quarter increased from 1.1% (breaking value) to 1.2%. Shin Seung-cheol, head of the bank’s national accounts manager, said, “As the export performance improved, the preliminary growth rate for the fourth quarter of last year came out better than the breaking news.” He said, “Semiconductor exports are likely to lead the growth this year,” he said. “Even looking at the increase in machinery imports in January and February, it seems to have a positive effect on facility investment.”

Looking at the growth rate in the fourth quarter of last year, exports increased by 5.4%, mainly for semiconductors and chemicals. It is 0.2 percentage points higher than the breaking news (5.2%). Private consumption declined by 1.5% overall as the consumption of goods such as food, lodging, transportation, and goods such as food and beverages declined. It was higher than the breaking news (-1.7%).

In the fourth quarter of last year, the GDP deflator rose 2.4% from a year ago. The GDP deflator is nominal GDP divided by real GDP. It is a macroeconomic indicator that reflects not only consumer prices but also all prices related to investment, import, export, etc. that make up GDP. “The price of imported goods has become cheaper because the price of raw materials including crude oil has fallen,” said Shin. “It is positive for profitability by reducing production costs from the standpoint of companies.”

The total domestic investment rate in the fourth quarter of last year was 30.8%, the same as the previous quarter. The total savings rate recorded 37.2%, 1.5 percentage points higher than the previous quarter. It is the highest since the third quarter of 2017 (37.7%).

Reporter Yoo Hye-jin [email protected]