South Korea’s economy grew 3.0% in 2017, and is forecast to expand at similar levels over the next five years. The government’s ongoing focus on enhancing productivity, increasing public sector employment, minimum wages, and social-spending will support both consumption spending and growth. Construction investment—the key driver of growth since 2015—is slowing, but stronger global demand for Korean exports should offset this.
In 2017 South Korea’s Per Capita GDP was US$29,730, an 8% increase from the year prior. This figure is expected to surpass US$35,000 by 2022 driven by targeted fiscal stimulus aimed at reducing income inequality.