May 17, 2008

South Korean economy grows by 5% YoY in 2007

According to South Korea's central bank, South Korean economy grew by 5% YoY in 2007 due to strong exports and solid growth of facility investments and private spending.

Mr Choi Chun sin director of the Bank of Korea's economic statistics division said that "The South Korean economy maintained solid growth last year as exports and private spending picked up.” He added that “Consumer spending is expected to grow further this year.”

According to the Bank of Korea, Korea's GDP reached USD 969.9 billion in 2007 and exports of goods, which account for nearly 40% of the economy, rose by 12% YoY in 2007.

Bank of Korea said that facility investments grew by 7.6% YoY in 2007, up from an earlier 7.5% estimate, while construction investments expanded 1.2% less than an earlier estimate of a 1.6% gain. Private spending, one of the main growth engines of the Korean economy, advanced 4.5% YoY in 2007

Bank of Korea also forecast that the Korean economy will likely expand 4.7% in 2008 due to solid exports and private spending amid global uncertainties.