Over the past decades, the economy of South Korea has seen to reach higher level of success making it one of the countries expected to succeed in the following years. By now the county has the 15th place in the world with its market economy by nominal GDP and has the 12th place by PPP or Purchasing Power Parity. It is also a member of the G-20 major economies and OECD. South Korea is known to be a developed country having a high-income economy and a developed market.
An Asian Powerhouse
Being one of the Asian Tigers, it is also known to be the only developed Asian country that has been included as a member of the Next Eleven group of countries. From the start of the 1960s to the end of 1990s, the country has been one of the fastest growing economies in the world. Due to its success in making the economy work effectively, the country is still included in the lists of the fastest rising developed countries in 2000s. The country is in line with other developed countries such as Taiwan, Singapore and Hong Kong that are known to be included in the Asian Tigers.
Fueling the Economy Through Exportation
With the success that the country had with its economy, citizens refer this growth to be the Miracle on the Han River. There are many factors that would affect the growth of the economy yet the country still managed to withstand these factors and made it possible to be among the known countries in Asia when it comes to economy growth. Some of the factors affecting that may affect the growth of the country’s economy are the lack of natural resources and overpopulation. Though the country is suffering from these problems, the government adapted an economy strategy that is export-oriented for fueling their economy.
After Effects of Asian Financial Crisis
Due to the use of this strategy, the country was reported to be the 6th in the largest countries across the world and got the 7th place in the largest importer among other countries in 2012. The country also faced a great struggle with its economy in 1997 because of the Asian financial crisis. It has relied with the bailout of IMF and has modernized and restructured the economy. This has resulted to the national development in the industry of ICT or Information and Communications Technology.
Though the country has show great potential in the stability of the economy growth, it still suffered from the damage it had in the stock market with its credit rating. This was the result of North Korea’s belligerence during military crises. It has affected the financial markets of the country’s economy.
Despite all factors affecting the economy, some known financial organizations still compliment the country’s resilience against these crises. It is also known to one of the several developed countries that were competent enough in avoiding the recession resulted from the global financial crisis. It gained a growth rate of 6.1% in 2010 from the rates 2.3% in the year 2008 and 0.2% by 2009. South Korea recovered its economy growth rate as it gained a record surplus amounting to US$70.9 billion by 2013’s end.