Koreans' income grows lower than GDP

Koreans’ income grows lower than GDP

The Bank of Korea (BoK) today said that the inflation-adjusted income of Koreans grew by 4.6% in the first three months of 2004 from a year ago which is lower than the economic growth rate of 5.3% during the same period. This situation marks that the Koreans' overall purchasing power has grown less than the GDP (Gross Domestic Product). During the first quarter, GNI (Gross National Income) amounted to Won 153.2 trillion (approx. $131.7 billion), indicating an increase of 4.6% compared to the corresponding period of last year. However, this increase is lower than the 5.3% GDP growth rate. It is reported that this situation emanates from the negative trade conditions affected by surging raw material prices, including crude oil. Aggravating trade conditions have reduced the country's purchasing power in the first quarter.