South Korea: Economic Stand

South Korea is a country located in east Asia with a population of 51. 25 million that is being governed by a Democratic government system. This developed country has an annual GDP growth of 2. 8% based on its 2nd quarter performance with a total of 7. 03%. The current GDP divided by the current population will result to a value of $26,152 per capita. The recent ranking survey has put South Korea on the 12th place in the world and 3rd in Asia.

GDP Breakdown

This graph represents the percentage of GDP that is covered by consumption. It can be seen here that on every first quarter of every year, the consumption percentage increases. The consumption value was $198 billion for 2016, $205 billion for 2017 and $215 billion for 2018 (all the 1st quarter status of each year).

Total investments reached 32. 35% of the GDP of South Korea on the 2nd quarter of 2017 but was only 26. 61% on the 1st quarter of 2016. The pattern here on the investments are quite the opposite of consumption since on every 1st quarter of each year, investment drops while on the 2nd-4th quarter it rises and stabilizes.

Based on the graph, it can be seen that the pattern for the total spending of the government increases from the 1st quarter to the 3rd quarter but decreases on the 4th quarter. The overall amount however increases per year.

The graph shows the total net export of South Korea for every month from 2016 to July, 2018. For the trading component, it is quite unpredictable. You can see only a few patterns like for example, on the 1st month of every year, the net export lowers. It is not safe though to conclude anything for the rest of the months without enough data. Its trading component may lower in some months, but it is still considerably nominal or even higher compared to other countries.

Trade Relations

South Korea and the Philippines has a strong bond because of the events that occurred during the Korean war. South Korea is a major trader to the Philippines and on 2006, they were the top sender to the Philippines which increased tourism, education and other departments. Exports to the Philippines reached $776534 THO which increased from the past year and will continue to increase for the coming years. The benefits of this strong bond will be the lowering of trading barriers, increase in the number of foreign products and services in both countries, and faster spreading of knowledge which I think is very beneficial for the Philippines.

The diagram on the right talks about the inflation percentage change throughout the months for 2016 to July, 2018. There was an increase in the inflation rate on 2017 but lowers on the entry of 2018 and stabilizes. I assume that since for the month of March until July it has been consistent, the value will not vary for the coming year. V. ForecastsFor the short-term forecast, I believe that the GDP of South Korea will follow an upward trend based on the information I have researched. Their trading transactions is export oriented and their exports are mostly focused on technological machines like chips and storage devices which are in high demand around the world. Adding to this, the export on petrochemical products and vehicles increased. Korea is with the technological advance wave and is producing these products then exporting it to developed and developing countries. The educational system of this country is exceptional and is known throughout the world. It has been proven that when the people of a country are well educated, it will most likely make the country prosper. Although there are issues concerning this such as brain drain but South Korea has taught her people to help it grow. There will be more educated Korean citizens which will most likely decrease the unemployment rate which is also plays a very important role in their success.

For the long-term forecast, I believe that it will still continue to improve but at a slower pace compared to some countries. One reason that this may come true in 10 years is that some countries that are more advance in terms of engineering and technology will develop at a faster rate like Germany (top engineers) and Japan (technology) for example. The points stated at the short term will also apply for the long term. Although, if South Korea changes its strategy in terms of improving the skills of their people that are more adept to the future environment, then it is possible for them to pave the way for a great advance.