GDP growth records 3.6 percent in 2011, thriving exports offset lackluster consumption


Korea’s per capita gross national income is estimated to have surpassed $30,000 (34.2 million won) for the first time in history last year when the actual purchasing power of the population is reflected.

The Bank of Korea said Friday that the per capita GNI posted $22,489 in 2011, inching up 1.5 percent from a year earlier.

But per capita GNI adjusted for purchasing power parity, or the average buying power, is estimated to have reached $30,070, according to Finance Ministry officials and BOK economists.

The PPP-based per capita GNI indicates a nation’s buying power under the assumption that price levels and foreign exchange rates are in equilibrium worldwide.

It measures how many goods or services can be purchased with nominal national output, and is used to learn actual living standards of a country.

Last September, the International Monetary Fund reported that Korea ranked 27th in the PPP-based GNI with $29,997.

The average purchasing power of Koreans has approached the level of that of Japanese and French, according to the central bank.

France and Japan ranked 24th with $33,910 and 25th with $33,885, respectively, in the IMF list. Spain (28th) and Italy (30th) fell behind Korea with $29,830 and $29,480, respectively.

According to a report by U.S.-based Citigroup, Korea is forecast to emerge as the world’s fourth richest country in terms of purchasing power in the 2040s.

Meanwhile, the BOK said Korea’s economy grew 3.6 percent in 2011 on the back of brisk exports, despite the sluggish domestic demand, construction investments and capital spending.

The nation’s GDP came to $1.11 trillion in 2011, compared with $1.01 trillion in 2010, $834.4 billion in 2009 and $930.9 billion in 2008.

“The real GDP growth last year came to 3.6 percent as exports compensated for the sluggish construction market,” the central bank said. The 2010 GDP growth recorded 6.3 percent.

According to the BOK, the manufacturing industry and mining industry scored the highest growth at 7.2 percent and 7.1 percent each.

But the service industry growth dipped from 2010’s 3.9 percent to 2.6 percent last year.

The construction market also contracted 4.6 percent and the agricultural and fisheries sector saw a negative 2 percent growth.

Private consumption grew 2.3 percent, which is slower than the previous year’s 4.4 percent. In a similar vein, facilities investment fell from the previous year’s 25.7 percent to 3.7 percent.

By Kim Yon-se (kys@heraldcorp.com)