The Bank of Korea announced the ‘Provisional National Income for the Fourth Quarter and the Entire Year of 2024.’
In the fourth quarter, the real Gross Domestic Product (GDP) increased by 0.1% compared to the previous quarter, while the nominal GDP grew by 2.2%. The real Gross National Income (GNI) for the fourth quarter rose by 1.3% quarter-on-quarter, with a 2.6% increase in nominal GNI. The nominal GDP for last year was 2,549.1 trillion won, showing a growth of 6.2% from the previous year. The per capita GNI was 49.95 million won, a 5.7% increase from the previous year.
The annual real GDP for 2024 grew by 2.0% compared to the previous year. The per capita GNI was 49.95 million won (equivalent to 36,624 USD), reflecting a 5.7% increase from the previous year.
The report, released on the 5th by the Bank of Korea, highlights that the real GDP grew by 0.1% quarter-on-quarter in the last quarter of 2024, matching the preliminary estimate. However, the report included some adjustments with the final month’s data that were not available during the preliminary estimates. This resulted in upward revisions for exports (+0.5%p), government consumption (+0.2%p), and imports (+0.2%p), while construction investment (-1.3%p) and facility investment (-0.4%p) were revised downward.
Looking at each economic sector, the manufacturing industry, driven by chemicals, computers, electronics, and optical devices, increased by 0.2%. The construction sector declined by 4.1% due to reductions in both building and civil engineering construction. The service sector increased by 0.4%, with declines in real estate, retail, and food/accommodation services offset by growth in finance and insurance, healthcare, and social welfare services.
In terms of expenditure, private consumption increased by 0.2% as services (such as healthcare and education) rose despite a decline in goods (such as automobiles and utilities). Government consumption, led by health insurance spending, grew by 0.7%. Construction investment fell by 4.5% across both building and civil engineering. Facility investment increased by 1.2% with an increase in machinery (such as semiconductor manufacturing equipment) despite a decline in transportation equipment (such as cars). Exports rose by 0.8%, driven by IT products like semiconductors, while imports increased by 0.1%.
Nominal GNI increased by 2.6% quarter-on-quarter and by 6.3% year-on-year, exceeding the nominal GDP growth rate (2.2%) due to an increase in net factor income from abroad (from 9 trillion won to 11.6 trillion won). Real GNI rose by 1.3% from the previous quarter and 3.4% year-over-year, surpassing the real GDP growth rate (0.1%) due to improved terms of trade reducing the real trade loss (from -14.2 trillion won to -10.4 trillion won) and increased real net factor income from abroad (from 9.2 trillion won to 12.2 trillion won). The GDP deflator rose by 4.1% year-on-year.
The total savings rate increased by 1.2 percentage points to 35.7% quarter-on-quarter, while the domestic investment rate decreased by 0.1 percentage points to 29.8%.
For 2024, the real GDP grew by 2.0% year-on-year, with a shift in construction from growth to decline, offset by an expanded increase in manufacturing. There was a slowdown in private consumption growth, a shift to decline in construction investment, while exports, government consumption, and facility investment each saw an expanded increase.
The real GNI for 2024 grew by 3.5% despite a decrease in real net factor income from abroad (from 38.1 trillion won to 31.6 trillion won), due to improved terms of trade reducing the real trade loss (from -91.4 trillion won to -53.1 trillion won).
The nominal GDP for 2024 was 2,549.1 trillion won, a 6.2% increase year-on-year, and in USD terms, it grew by 1.6% to 1.8689 trillion dollars. Nominal GNI increased by 5.8% as nominal net factor income from abroad fell (from 42.1 trillion won to 36.1 trillion won), below the nominal GDP growth rate (6.2%).
Per capita GNI increased by 5.7% to 49.95 million won, or 1.2% in USD terms to 36,624 dollars. The GDP deflator rose by 4.1% year-on-year. The total savings rate increased by 1.6 percentage points to 35.1%, while the domestic investment rate fell by 1.8 percentage points to 30.0% compared to the previous year.