Private consumption -5%, the largest decline
Export also -2.5%, stepping back in 11 years
Don’t defend the expanded finances
Rebound from the 3rd quarter, the trend of’low and low’
It means that advanced countries have been saved by -3~-10%.
By Kim Myung-jin, staff reporter, [email protected]” alt=”On the afternoon of the 26th in the winter rain, shopping streets closed in the aftermath of Corona 19 are seen on the streets of Myeong-dong, Jung-gu, Seoul. The Bank of Korea announced that the real gross domestic product in 2020 was down 1.0% from the previous year.
By Kim Myung-jin, staff reporter, [email protected]” />
On the afternoon of the 26th in the winter rain, shopping streets closed in the aftermath of Corona 19 are seen on the streets of Myeong-dong, Jung-gu, Seoul. The Bank of Korea announced that the real gross domestic product in 2020 was down 1.0% from the previous year.
By Kim Myung-jin, staff reporter, [email protected]
As the private consumption was shocked by Corona 19, the Korean economy recorded negative growth in 22 years last year, but there is also an expectation that the semi-annual growth rate is “lower” and will continue a rebound this year. Looking at the annual and fourth quarter of 2020 economic growth rate (breaking report) released by the Bank of Korea on the 26th, last year, the Korean economy experienced a 1% negative growth as private consumption (-5.0%) contracted significantly. The growth rate of private consumption plummeted to -6.5% with the Corona 19 epidemic in the first quarter, then rebounded in the second quarter (1.5%), but fell back to negative (-1.7%) in the fourth quarter. Park Yang-soo, head of the Economic Statistics Bureau of the Bank of Korea, explained at the briefing session on the day that “the third spread of the corona has reduced private consumption, centering on face-to-face services such as restaurants, cafes, and entertainment and cultural facilities.”
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It was government spending and exports that prevented the sharp decline in growth. The government’s active fiscal expenditure to prevent the economic downturn was the backbone. Last year, the government’s annual consumption increased by 5%, and total government expenditure, including investment, increased the growth rate by 1 percentage point. Exports also contracted sharply in the first half, but rebounded from 3Q, leading the economic recovery. Export growth was negative in 1Q (-1.4%) and 2Q (-16.1%), then rebounded sharply in 3Q (16.0%) and continued to increase in 4Q (5.2%). Net exports (exports-imports) supported the annual growth rate by 0.4 percentage points. It recorded the first negative growth after the financial crisis, but it is evaluated that it was relatively good compared to other major countries. Hong Nam-ki, Deputy Prime Minister of Economy and Ministry of Strategy and Finance, told Facebook on the same day, “The developed countries in the top 10 economic scale are expected to grow negatively from -3% to -10% or more last year.” “(We) It was found that it contributed to the width and buffered the reverse growth.” Director Park Yang-soo said, “Our country’s growth rate fell 3 percentage points from 2.0% in 2019 to -1.0% last year, which is less than 3.7 percentage points (6% → 2.3%) in China, which is evaluated as good.”
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As the economy rebounded for the last two consecutive quarters, it is predicted that the economy will show a modest recovery after the bottom of the second quarter. Last year, the Korean economy rebounded 2.1% and 1.1%, respectively, in the third and fourth quarters after stepping backwards in the first quarter (-1.3%) and the second quarter (-3.2%). The BOK pointed out that while forecasting 3% growth this year, the impact of the third corona spread should be observed. Director Park said, “When looking at the level of private consumption in the fourth quarter of 2019 as 100, as of the fourth quarter, private consumption is only 93, so it is difficult to say that consumption has escaped the effects of the corona.” The speed of improvement in domestic demand is expected to be slow until concerns about Corona 19 subside due to the successful vaccination of the vaccine. Joo-won, head of the economic research department at Hyundai Economic Research Institute, said, “I believe this year will have a positive effect on exports as the global economy recovers.” It will be set.” Meanwhile, last year’s real gross domestic income (GDI) growth rate was -0.3%, surpassing the real growth rate as the terms of trade improved due to falling oil prices. The BOK predicted that the per capita nominal gross national income (GNI) would be in the $31,000 range, a slight decrease from 2019 ($32,115). Senior Reporter Han Kwang-deok [email protected]