2022 Economic Outlook

Published on August 12, 2022
Published by Economic Analysis Coordination Division

   Korea's economy, which ranks 10th in the world in terms of size with a trade volume of USD 1.2 trillion in 2021, is seeing continuous growth centering on high value-added industries such as semiconductors. However, its growth rate has been gradually declining since the Global Financial Crisis, and it is facing high interest rates, high exchange rates, and high inflation caused by the COVID-19 pandemic, the Russia-Ukraine conflict, the New Cold War dynamics, and US benchmark interest rate hikes, etc. In addition, population aging and decreasing total population are working against improving the growth potential of the Korean economy.
   In the midst of increasing domestic and foreign uncertainties related to the Korean economy, this report was prepared with the aim to enhance understanding of the Korean economy by outlining its structure; various economic policies used for economic growth and economic response purposes; indicators illustrating economic conditions; and pending economic issues. Accordingly, in Chapter 1 of Part I of this report, the composition, principles, and order of the national economy are briefed, and in Chapters 2 and 3, the circulation and growth of the national economy; and economic structure in terms of production, distribution and expenditures are described, respectively. Chapter 1 of Part II provides an overview of economic policies, and Chapters 2 through 6 introduce economic policies regarding production, distribution, expenditures, growth, and financial & monetary policies, along with various economic indicators related thereto. It also reviews the issues facing the Korean economy, such as rising energy and resource prices, household debt, global inflation, virtual assets, and global value chains.