Data showed today, Tuesday, that the rate of growth of the Korean economy came in third place among the major economies around the world in 2020 despite the year-on-year contraction that it witnessed due to the Corona pandemic.
The Korean economy contracted by 1% last year compared to the previous year, but it showed the third best performance among 15 major countries, according to data from the Organization for Economic Cooperation and Development, quoted by the Korean news agency Yonhap.
China – the No. 2 economy in the world – came in first place last year, with the economy growing by 2.3% on an annual basis, followed by Norway, with a contraction of 0.8%.
And came fourth in Indonesia, with a contraction of 2.1%, Sweden with a contraction of 2.8%, the United States shrinking 3.5%, Japan with a contraction of 4.8%, Germany with a contraction of 5% and France with a contraction of 8.2%.
The British economy contracted by 9.9% year-on-year in 2020, while the Spanish economy suffered a severe contraction of 11%.
The Korean economy received support thanks to the recovery of exports, which are the main engine of economic growth, in addition to increased government spending to counter the repercussions of the outbreak of the pandemic.
Korean exports fell by more than 20% in April and May before growing by 4.1% and 12.6% in November and December, respectively, thanks to higher demand for memory chips and other major export products.
The government has also introduced a series of stimulus packages as part of efforts to mitigate the economic repercussions of the pandemic. The state’s contributions to the growth of the economy reached one percentage point, compared to two percentage points for the private sector.
Last December, the organization predicted that the Korean economy would grow by 2.8% in 2021 compared to the previous year. The Korean economy growth forecast ranks 29th out of 50 major countries.
The Chinese economy is expected to grow by 8%, which is the largest in the world, and the French and Spanish economies will expand by 6% and 5%, respectively.
The article The Korean economy, the third largest in the world in terms of growth rate in 2020, was written in the Stock Exchange newspaper.