South Korea’s Per Capita Income Will Take 17 Years to Double
The Organisation for Economic Co-operation and Development (OECD) has forecasted that South Korea's per capita income (or GNI) would take 17 years to reach $40,000 if low growth continues. The country has earned $20,000 in 2006 and this figure could double in 2023, which is longer than the average 13.6 years of OECD.
It has taken Japan 8 years, Italy 13 years and the UK 14 years to reach $40,000 per capita GNI. If South Korea will indeed earn the amount only after 17 years, it'll become the nation with the second longest period - after Finland, which has taken 18 years - to obtain the target.
The country's economic forecast summary on June 2015 has reported, "output growth is projected to slow to around 3% in 2015". G7 nations, such as Japan and the U.S., have rebounding growth rate. South Korea's potential growth, on the other hand, has been predicted to continue decreasing. From 3.59% this year, it will go down to 2.9% in 2022 and 1.91% in 2034.
Gross national income includes gross domestic product (GDP), which measures the services and goods made. It covers the income that citizens earn abroad. As of late, the only sectors that have been leading South Korea's economy are businesses specializing in TV broadcasts, handsets and semiconductors. The lack of emerging industries has put the country in slow growth.
According to researcher Kim Chang-bae of the Korea Economic Research Institute (KERI), the service sector could become a new source of improvement. The government should develop it to create a higher demand for educated employees. The OECD, on the other hand, suggests putting in more "investment to reverse the declining contribution of capital growth to productivity and GDP growth".
