Economy of South Korea expanded at the fastest pace in 11 years in 2021, supported by strong exports and construction activity. However, South Korean economy faced decline in capital investment and a slow recovery in service sector.
Bank of Korea data on Tuesday showed gross domestic product (GDP) expanded 4.0% in 2021, as demand for exports soared.
The BOK expects GDP to grow 3.0% this year as Asia’s fourth-largest economy benefits from strength in chips exports and increased public spending. However, downside risk exists with lower consumption amid surge in omicron cases in the country.
“Global demand for our chips is resilient and strong exports will keep (South Korea’s) growth momentum solid,” said Hwang Sang-pil, head of BOK’s Economics Statistics department.
“People are getting used to social distancing curbs.. Activity was slower in December but the hit is smaller than before.”
