Korea world`s 14th largest economy

The global economic recession may prevent Korea from reaching its long-term goal of joining world`s club of top 10 economies, while resource-rich emerging economies outperform, a report released yesterday states.

The Bank of Korea report found that Korea, with gross domestic product of $969.8 billion at the end of 2007, was the world`s 14th largest economy. The ranking was unchanged from a year ago.



"Resources-rich Brazil, Russia and India reported high rates of GDP growth and price growth, outstripping Korea," the central bank said in the report, which was based on the International Monetary Fund`s World Development Indicators 2009.

A revised data released in March by the BOK put the nation`s nominal GDP at just over $1 billion.

Falling exports coupled with coupled with sluggish consumer spending and corporate investment at home will cause Korea`s 2008 ranking to slip 15th in 2008 and then 16th in 2009, It forecasts a rebound to the 14th spot after 2010.

The IMF, predicting a minus 4 percent growth in 2009 and a plus 1.5 percent in 2010 for Korea, holds one of the most pessimistic views on Korea. The BOK predicts the economy to shrink 2.4 percent in 2009 and the government`s forecast is minus 2 percent.

With strength in IT and manufacturing, Korea came just a notch from the world`s top 10, ranking 11th for two years in 2002 and 2003. However, it slipped to the 12th position in 2004, to 13th in 2005 and then to 14th in 2006.

Yesterday`s report also showed that Korea`s per-capital income, standing at $19,730 billion, ranked 48th in 2007, three notches higher than a year ago. It was larger than Taiwan`s $17,299, but was still at a distance from Singapore`s $32,340 and Hong Kong`s $31,560.

In terms of gross national income, Korea took the 14th place with $955.8 billion.

The world`s top 5 economies were the United States, Japan, Germany, China and the United Kingdom. The size of the American economy was about 14 times that of Korea. Japan was about 4.5 times of Korea.

Korea`s share of the world economy was reduced to 1.78 percent in 2007 from 1.82 percent a year ago.

Liechtenstein, a small western European country located between Switzerland and Austria, had the world`s highest per-capita GNI of $99,159, followed by Bermuda at $84,159 and Norway at $77,370. The United States came in at 16th with $46,040 while Japan took the 26th spot with $37,790.

By Lee Sun-young



(milaya@heraldm.com)