South Korea’s economic growth slowed sharply in 2022 as exports weakened amid rising recessionary risks from strong monetary tightening at home and abroad, according to official data.
Central bank data showed that South Korea’s gross domestic product – a key measure of growth – grew by 2.6 percent in 2022, compared with a 4.1 percent increase in the previous year.
Growth in 2022 was the slowest pace since 2020, when the economy contracted by 0.7 percent amid the fallout from the coronavirus pandemic.
In the fourth quarter of last year, the economy contracted by 0.4 percent on a quarterly basis, down from the previous quarter’s growth of 0.3 percent.
These figures were unchanged from the growth estimates released by the Bank of Korea in January. It reflects the latest economic data related to exports, investment and others.
The slowdown in growth was attributed to weak export growth amid falling sales of semiconductors and other commodities.
The data showed that exports grew by 3.2 percent in 2022, compared to an increase of 10.8 percent in 2021.
Private consumption rose 4.3% last year, higher than the 3.7% increase in 2021, apparently thanks to the easing of coronavirus restrictions.
Utilities investment shrank by 0.5 percent last year, compared to a 9 percent increase in the previous year. Investment in construction contracted by 3.5 percent, which is worse than the 1.6 percent decline in the previous year.
Government spending increased by 4.1 percent last year, lower than the 5.6 percent increase in the previous year