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South Korea’s GDP ranking falls to 13th

Posted July. 13, 2023 07:54,   

Updated July. 13, 2023 07:54


The Bank of Korea released a report stating that South Korea’s GDP ranking, which held the 10th position for two consecutive years in 2020 and 2021, dropped out of the top 10 within three years. This decline can be attributed to several factors, including the rise in the exchange rate, which resulted in a decrease in the dollar-denominated price. Additionally, there has been a decline in key export items, particularly semiconductors.

According to the Bank of Korea’s report released on Wednesday, South Korea’s nominal GDP last year is estimated to be 1.6733 trillion dollars, marking a 7.9 percent year-on-year decrease. However, in terms of Korean won, the nominal GDP increased by 3.9 percent, reaching 2161.8 trillion won. This discrepancy is primarily due to the 12.9 percent average rise in the won-dollar exchange rate, resulting in a decrease in nominal GDP when measured in dollars. Nominal GDP is a crucial indicator of a country’s economic size, representing the total value of all goods and services produced within a given year. South Korea’s nominal GDP ranking has experienced fluctuations in recent years. It ranked 10th in 2018, dropped to 12th in 2019, and returned to the 10th position in both 2020 and 2021 for two consecutive years.

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