Korea’s per-capita GDP based on purchasing-power parity is expected to plummet this year for the first time in 22 years due to the coronavirus pandemic.
Per-capita PPP gauges the purchasing power of each person considering inflation and currency value.
The International Monetary Fund forecast in a report on Sunday that Korea’s per-capita GDP based on PPP will decline 1.3 percent.
There have been only two times when it fell — during the oil crisis in 1980 (by 3.2 percent) and during the Asian financial crisis in 1998 (by 5.8 percent).
The IMF forecast that most major economies will be even worse affected, including the U.S. (6.4 percent), Japan (4.8 percent), Germany (seven percent) and France (7.4 percent). The only major economy where per-capita GDP is expected to rise is China, and then only by 0.9 percent.
Earlier, German’s Allianz forecast a still gloomier outlook. “Lockdowns for more than half of the global population and GDP have hit the world like a meteorite, pushing the global economy into its worst recession since World War II,” or 3.3 percent, it predicted.
Sung Tae-yoon at Yonsei University said living conditions for Koreans will become tougher “because the coronavirus epidemic hit at a time when economic conditions were already bad.”
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