South Korea's Economic Growth in 2024

In a significant economic development, South Korea's per capita gross national income (GNI) witnessed a 1.2% increase from the previous year, reaching $36,624 in 2024. This marks the second consecutive year of growth, showcasing the resilience of the South Korean economy amidst global challenges.

Despite the depreciation of the Korean won, the per capita GNI in Korean won terms saw a 5.7% increase, totaling 49.96 million won. The average won-dollar exchange rate rose by 4.5%, indicating the complex interplay between currency valuation and economic growth.

Understanding the GDP Deflator and Investment Rates

The GDP deflator, a measure of the price level of all domestically produced goods and services, increased by 4.1% compared to 2023. This reflects the changing dynamics of export and import conditions. Meanwhile, the total savings rate climbed to 35.1%, a 1.6 percentage point increase from the previous year, whereas the gross domestic investment rate decreased to 30.0%.

Quarterly Economic Performance

The provisional growth rate for the fourth quarter of 2024 was confirmed at 0.1% quarter-over-quarter, aligning with preliminary estimates. Adjustments based on December's partial performance data revealed increases in exports and government spending, while construction and facility investments experienced declines.

On an annual basis, the provisional growth rate remained steady at 2.0%, underscoring the stability of South Korea's economic expansion.