Real Gdp for South Korea

1. Introduction

This report is written to analyze the strength of South Korea’s economy with the use of macroeconomics indicators and to discuss the economic trends of South Korea for the past decade. What the report will be sharing is South Korea’s real GDP at constant prices, GDP annual growth rate and GDP per capita; in addition with the unemployment rate and inflation rate. To understand more about what happened in South Korea, this report will focus on how they suffered from the global financial crisis in 2009.  South Korea has a population of 50.6 million people as of 2016. South Korea is known for their Korean culture, foods and fashion. South Korea is a developed country; in addition South Korea GDP per capita is equal to other developed countries such as New Zealand, Italy and Israel.  South Korea is known to have a life expectancy birth rate at 80 years; compared to 78 years in the USA. South Korea is a communication manufacturer such as one of the big firm Samsung. South Korea’s economists assume that South Korea private consumption is strong; with a mild recovery in their export to keep the economy going.

1. Production Output Performance Analysis
   

1. Real GDP

[pic 1]The above diagram is the Real GDP for South Korea. This diagram is to measure the GDP using the current price level. Hence, in contrast it shows nominal changes in GDP. Not only constant prices try to remove the effect of inflation, but it also modifies the GDP for adjustment in inflation. Hence, using constant prices to measure changes in output allows real changes in GDP to be evaluated (Pettinger, 2012).

In 2009 South Korea was hit by the financial crisis. As you can see on the diagram above that in 2009, the GDP at constant price drop from 300,000 to 290,000. Many of South Korea firms close down due to the global financial crisis. We saw the recovery in 2010, it went up from 290,00 to 300,000. From then on, South Korea has been doing well.  

1. GDP Growth Rate

[pic 2]

This diagram is South Korea GDP Annual Growth Rate. This shows GDP changes from one year to another. This tells us is that the Growth rate takes into account the effect of inflation. Hence, this play plays an important role in the economy of the country (No name, n.d) .

South Korea is one of the many countries who were hit by the global financial crisis in 2009 as you can see on the diagram above. (no name, n.d) Over 50 years, South Korea has been the most recognized in advanced technology. South Korea is one of the most established countries which have the highest percentage of GDP (57% of GDP). South Korea had grown 2.7% each year in the past first quarter of 2016. South Korea was the weakest enlargement since the third quarter of 2015 as private ingesting and exports delayed while facilities investment neglected.

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1. Real GDP Per Capita Analysis

[pic 3]

The GDP Per Capita is measured to the county’s capita income per person. It is divided by the Country’s GDP and its total population

The GDP per capita for South Korea was recently recorded at 24565.56 US dollar in 2014. South Korea per capita is the same as 195% of the world’s average. The per capital GDP of the nation may also hit below the 15,000 U.S. dollar level in 2009 for the first time in five years if the economy reduce 4%. In addition, the local currency is traded at an average of 1,300 won against one U.S. dollar as widely anticipated, according to Yonhap. Therefore, South Korea has been on an upward slope as South Korea economy recovered from the global financial crisis in 2009. South Korea

1. Trends in Economy

With South Korea being a surplus economy, the country has been ongoing a travel deficiency since the year 2000. It also means that South Korea people travel abroad to spend more compared to any other country’s citizens spend in their own country. However, there have been narrow trends in this deficit since the year 2007 till 2008.

South Korea tourism industry strategy is doing greatly to lure a growing number of tourists from other country. The South Korea’s Korean wave, also known as Hallyu, is a cultural promotion campaign throughout international industries giving to the rising popularity of their Korean culture, food, fashion and cosmetics. These factors also greatly contribute to the revenue of the country.

1. Measures for Production Output Performance

The 2008 global financial crisis South Korea was the most remarkable is that the strong economic performance of South Korea has occurred in an environment of weak global demand. With the epicenter of the crisis in the matured world, the capability of South Korea to stick through the crisis had been admirable. Sadly most of the companies in South Korea had to close down due to the financial crisis; in addition it cause most of the worker to be unemployed. Regardless of the recession in South Korea, the country is still growing in GDP.  

1. Labour Market Analysis

1. Unemployment Trends
   [pic 4]

Unemployment rate is measured by the percentage of the employed citizen in a country’s workforces who are age older than 16 years old and who have lost their jobs or have unsuccessfully seeking jobs in the last month or they are still finding a work (N.p., 2016. Web. 7 June 2016.).

The formula for unemployment rate is:

        Unemployment Rate= Number of Unemployed/ Total Labor Force

In 2010, South Korea’s unemployment rate was the highest peak in between 2006 to 2016 as the above diagram as shown. On the first quarter of 2010 the unemployment rate drop to 3.9 percent compared to the year after which the unemployment rate rose to 4 percent. The lowest unemployment rate was documented at 2.9 percent in last quarter of the year 2013.