July 28, 2015 10:22
Korea's per-capita GDP is expected to drop for the first time in six years.
The LG Economic Research Institute on Monday estimated Korea's per-capita GDP at US$27,400 if this year's real economic growth rate amounts to a conservative 2.6 percent and the exchange rate is put at W1,109.
That would mark a drop of $600 compared to 2014 and the first decline since 2009.
Korea's per-capita GDP stood at $20,464 in 2008 in the midst of the global financial crisis, down around $2,700 compared to 2007 and dropped even further to $18,346 in 2009, but had been rising ever since.
Lee Geun-tae at the institute said, "Global trade volume shrank, and that was compounded by low international oil prices and deflation causing the won to be undervalued. Economic growth has also been lackluster, so per-capita GDP is expected to decline compared to last year."
International Monetary Fund figures tell a similar story. According to the IMF, Korea’s per-capita GDP is estimated at W31.16 million. If the won stands at W1,120 against the dollar this year, per-capita GDP comes out to $27,822 or around $200 less than 2014.
This has led to forecasts that Korea's per-capita GDP will not surpass the $30,000 mark by 2017, as initially hoped.
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