South Korea is regarded as the 14th largest economy in the world with a nominal GDP of $1.449 trillion. The main industries are electronics, telecommunications, automobile production, chemicals, shipbuilding, and steel, as Korea has few natural resources. They however, are the 7th largest exporter in the world and have therefore adopted an export-driven economy.
The amount of development and economic equality within a nation is helpful when evaluating and predicting the future economic growth because of the strong correlation between these factors. There was only 16% of the population living below the poverty line in 2009 and an unemployment rate of 3%. The gini coefficient is used for estimating the distribution of wealth within a nation. It measures the cumulative share of income that is earned by the cumulative percentage of people from the lowest to the highest income brackets. On a scale of 0 to 100, with 100 indicating that one single person has the entire share of the nation’s income. The gini coefficient in Korea is 31.0, which indicates there is a fair degree of wealth equality.
As shown in the graph, the total factor productivity index has increased since 2009. Total factor productivity seeks to quantify the degree of productivity within the aggregate economy, and it has been shown to be a accurate predictor of economic growth. The 2nd graph shows that during this same period, GDP growth has consistently been positive although there was a dip in the GDP growth rate in 2009. Since 2009 there has been a steady rise in both GDP and total factor productivity, two of the main criterion for predicting future economic growth.