Explore South Korea's latest macroeconomic trends and forecasts to inform business strategy and pinpoint opportunities and risks

South Korea’s External Debt to GDP Ratio (2010 - 2020, %)

  • South Korea’s external debt in relation to its GDP was 33.4% in 2020 
  • External debt as a % of GDP of South Korea increased by 16.8% from the previous year in 2020 
  • Between 2010 to 2020, the external debt as a % of GDP in South Korea was highest in 2020 with 33.3% and was lowest in 2017 with 25.4% 

 

South Korea External Debt as a % of GDP Highlights in 2020 

South Korea’s external debt as a % of GDP hit 33.3% in 2020, an increase of 16.8% over the previous year. Between 2010 to 2020, South Korea’s external debt as a % of GDP increased by 7.7%.  

The COVID-19 pandemic has increased the already high gross government debt due to significantly lower tax revenues, as well as soaring government expenditure to support the economy during the pandemic. According to the IMF, gross government debt stood at 47.9% of GDP in 2020 and is expected to further increase to 51.3% of GDP in 2021. According to the OECD, South Korea’s household debt swelled to a record 201% of net disposable income in 2020, which is one of the highest among the OECD nations. 

Outlook on Global Economy 

Real GDP is measured using inflation-adjusted base year prices. Real GDP changes are a measure of economic growth and show whether there has been an increase or decrease in the volume of economic activity. 

According to real GDP, the world's top five economies are the United States, China, Japan, Germany, and India. After the US, China had the largest real GDP in 2021 with a value of $12.7 trillion in 2021. With a $6 trillion real GDP during the same period, Japan came in third place globally. Germany and India are the other two largest leading economies, with real GDPs of $3.8 trillion and $2.9 trillion, respectively. 

Factors Affecting the Global Economy: 

A rise in COVID-19 cases:  

As a result of Omicron, a new variant of COVID-19, more cases have been reported worldwide, resulting in the disruption of supply chain management. However, the global vaccination drive has reduced the fatality rate from the coronavirus.   

Rising Inflation and Interest Rates:  

As a result of rising inflation rates in both developing and advanced economies, central banks have been forced to tighten monetary policy and raise interest rates to keep prices from rising. However, a steady increase in interest rates could cause financial distress in some economies. 

Explore South Korea's latest macroeconomic trends and forecasts to inform business strategy and pinpoint opportunities and risks Explore South Korea's latest macroeconomic trends and forecasts to inform business strategy and pinpoint opportunities and risks Visit Report Store
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