Korea's per capita GDP sinks

Korea's per capita GDP sinks

SEOUL (AFP): South Korea's per capita GDP is expected to fall to US$6,600 this year from $10,548 in 1996 due to the sharply devalued won and the ongoing economic slowdown, a private think tank said over the weekend.

The LG Economic Research Institute said South Korea's economy was expected to dwindle 1.3 percent this year and its gross domestic product would contract to $312.1 billion in 1998.

The projections were based on the assumption that the annual average won-dollar exchange rate would be around 1,445 won.

As a result, the country's global rank measured by GDP -- the added value of domestically produced goods and services -- would drop from 11th in 1996 to 17th this year, behind Russia, Mexico, India and Netherlands.

In 1996, South Korea's GDP reached $484.6 billion.

"Because of the ongoing economic slump and the currency devaluation, per capita GDP will post negative growth for the first time in 17 years," said a senior researcher of the institute.