S.Korea's economy expected to grow 3.1 pct in 2022

2021-12-20 16:12

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SEOUL, Dec. 20 (Xinhua) -- South Korea's economy was expected to grow 3.1 percent next year amid the continued global economic recovery from the COVID-19 pandemic downturn and the improved domestic demand caused by higher vaccinations, the Ministry of Economy and Finance said Monday.

The Asian country's real gross domestic product (GDP), adjusted for inflation, was forecast to expand 3.1 percent in 2022 from a year earlier, after going up 4 percent in 2021.

The ministry said in a statement that the domestic demand would rapidly recover next year while export and facility investment continue to gain in addition to the expected turnaround in construction investment.

The ministry, however, noted that uncertainty could mount over the spread of the COVID-19 variants, the prolonged supply disruption, and the tightened monetary policy in major economies.

Private consumption, which reflects domestic demand, was projected to increase 3.8 percent next year due to higher vaccinations that would gradually bring people back to normal life and enhance consumer sentiment.

It was higher than this year's private consumption outlook set at a growth of 3.5 percent.

In the latest tally, South Korea's full vaccination rate reached 81.9 percent of the total population, while 22.5 percent of the population received booster shots.

Export, which accounts for about half of the export-driven economy, was predicted to rise 2 percent next year on the back of the global economic recovery and the robust demand for locally-made semiconductors, cars, secondary batteries and bio-health products.

The ministry cautioned that the export could be hampered by the spread of the Omicron variant and the protracted disruption of the global supply chain.

This year's outbound shipment was estimated to have increased 25.5 percent.
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