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Korean economy expands 3% in 2013

Updated: 2014-03-27 03:42:11 (KST)
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Korea's central bank said Wednesday
that the nation's economy expanded 3 percent in 2013 from a year earlier.
That is faster than the bank's earlier estimate of 2.8 percent and outpaces the 2.3 percent recorded in 2012.
The Bank of Korea said robust exports and a steady rise in consumer spending drove the higher than estimate performance, despite sluggish facilities investment.
The upward revision comes with a caveat, however, as the nation's central bank recently adopted new international standards on calculating gross domestic product.
Under the new standards, the bank changed the base year to 2010 from 2005 and included contributions from new sectors, like research and development, to the nation's gross domestic product.
Experts point out that the new growth rate does not necessarily mean the domestic economy is on track to a stronger economic recovery.


"The domestic economy is showing mixed signals this year. Exports, which account half of the nation's GDP, looked bad in the first two months of this year, but consumption and production were decent."

Korea's gross national income, a gauge of the people's purchasing power, also rose 4 percent in 2013 from the previous year.
The per capita GNI stood at over 26-thousand U.S. dollars last year, up from around 24-thousand in 2012.


"Meanwhile the central bank said the new standards could also impact the bank's new growth forecast that's set to be unveiled early next month, but added it's too early to talk about the degree of change.
Hwang Ji-hye, Arirang News."


Reporter : emilyfwang@arirang.co.kr

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