The size of the Korean economy is expected to rank 10th in the world this year and next year.
According to the World Economic Outlook data of the International Monetary Fund and the IMF, Korea’s nominal gross domestic product (GDP) this year was estimated to be 1823.9 trillion dollars in US dollars, or about 2166.8 trillion won in Korean money.
This is the 10th largest among 191 countries worldwide.
Next year, Korea’s GDP is expected to rank 10th in the world, with a GDP of US$197.7 billion, or about 2266.3 trillion won.
If the IMF’s forecast is realized, Korea will maintain the world’s 10th largest economy for three consecutive years from last year to next year.
Korea’s GDP ranking has been out of the top 10 ever since it was ranked 10th in 2005, but only moved up to 10th in 2018.
However, it fell two places to 12th place in 2019, the following year, and then reclaimed 10th place last year.
Korea can maintain its 10th place this year and next year because it is expected to continue its decent economic growth despite the impact of the COVID-19 crisis.
The IMF’s forecasts for Korea’s growth this year and next year are 4.3% and 3.3%, not far behind the global economic growth forecasts of 5.9% and 4.9%.
This year’s growth rate reflects the base effect of last year’s economic recession, so it is interpreted that Korea’s growth rate this year is relatively low.
The two-year average growth rate was 1.3% in the US and 0.2% in Canada, recording positive growth, but the remaining countries such as the UK, France, Germany, Japan and Italy are all estimated to be negative.
The ‘World Economic Leaderboard 2022’ report published by the British think tank Institute of Economics and Management also predicted that Korea would maintain the 10th position for the next several years.
The research institute analyzed the Korean economy this year, saying, “The performance of chaebol companies such as Samsung, LG, and Hyundai was outstanding.” “The demand for electronic equipment during the pandemic surged and the work environment was changed due to telecommuting, etc.” .
He also predicted, “If global trade revives after the COVID-19 pandemic, it will be of great help to the Korean economy.”
However, the institute predicted that Korea’s ranking would gradually decline to 11th in 2026 and 12th in 2037.
It is expected that Brazil will give up 10th place in 2026 and allow Indonesia and Russia to overtake it in 2036.