1Quarterly GDP 1.8% increase, worsening employment and income distribution
According to the relevant ministries, 1real quarterly GDP rose by 1.8% from the previous quarter, while exports increased led by semiconductors, but employment and income distribution worsened, intensifying the “K-shaped polarization.” Institutions raised their growth forecasts for this year.
According to the relevant ministries, 1real quarterly GDP rose by 1.8% from the previous quarter. This figure shows differences in performance by industry amid an export-led recovery trend.
The year-on-year growth rate stood at 3.8%. Exports rose by 5.9%, led by information technology products such as semiconductors.
Facility investment increased by 6.6%, while construction investment increased by 1.4%.
However, employment and income distribution indicators deteriorated further. The report diagnosed this as a deepening of “K-shaped polarization.”
Concerns have been raised that growth is overly concentrated in the semiconductor boom. Exports are driving growth under the influence of the semiconductor supercycle.
International organizations and research institutes have raised their growth forecasts for this year. The Organisation for Economic Co-operation and Development presented a forecast of 2.6% and the Korea Institute of Finance presented 2.8%.
The Bank of Korea issued a forecast of 2.6%, while the Korea Development Institute forecast 2.5%.
Among private-sector institutions, JPMorgan presented 3.7%, while Bank of America presented 3.1%. Some private-sector forecasts anticipate growth exceeding 3%.
Sources: 뉴시스 경제
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