Korean Regional Economy Shows Mixed Trends in 2nd Quarter of 2023

In the second quarter of 2023, the regional economy in Korea exhibited a blend of growth and contraction across various sectors. Based on data from the Income Statistics Department, under the guidance of Manager Jo Seong-hyun, the following highlights emerged:

  • Manufacturing Sector: The manufacturing industry witnessed growth in provinces such as Jeju (3.1%) and Sejong (2.3%) compared to the same period last year. However, regions like Gyeonggi (-16.2%) and Busan (-8.5%) experienced a decline. Overall, the national average showed a decrease of 7.4%.
  • Service Sector: In the service sector, positive growth was observed in cities like Incheon (7.6%) and Seoul (6.6%) compared to the previous year’s quarter. Conversely, Jeju (-1.7%) and Sejong (-1.4%) encountered a downturn. Nationally, there was a 2.8% increase.
  • Consumer Spending: Consumer spending, including retail sales, rose in cities including Daejeon (5.4%) and Busan (4.6%) in contrast to the same quarter last year. Nonetheless, regions like Jeju (-7.4%) and Daegu (-5.0%) saw a decline. Nationally, there was a slight drop of 0.3%.
  • Exports: Exports, measured by customs clearance, surged in provinces like Gyeongsangnam-do (25.1%) and Daegu (12.9%) year-on-year. However, regions such as Jeollanam-do (-32.8%) and Sejong (-31.7%) faced a decline. Nationally, exports contracted by 12.0%.
  • Employment: Employment rates showed an upward trend in provinces like Gangwon (2.2 percentage points) and Daegu (1.7 percentage points) compared to the previous year’s quarter. Conversely, Gyeonggi experienced a slight decline of 0.4 percentage points. The national average employment rate saw a rise of 0.5 percentage points.
  • Inflation: Consumer prices, as indicated by the Consumer Price Index, increased across all regions. Notably, Seoul (3.8%) and Busan (3.3%) recorded higher inflation rates compared to the previous year’s quarter. The national average inflation rate stood at 3.2%.

These figures indicate a diverse economic landscape across different regions of Korea during the second quarter of 2023. While some areas experienced growth, others faced challenges in various economic indicators.