South Korea is set to surpass Japan in per capita GDP again this year, according to a recent outlook by the International Monetary Fund (IMF).
In its latest World Economic Outlook report released on Oct. 24, the IMF estimated S. Korea’s per capita GDP for 2023 at $36,132, a 1.6% increase from last year’s $35,563. Meanwhile, Japan’s per capita GDP is projected to drop by 3.1% to $32,859, down from $33,899 in 2022, widening the gap between the two countries.
A Bank of Korea representative suggested that S. Korea’s relatively high nominal GDP growth rate during the first half of the year could be a factor in this widening difference.
Moreover, the IMF forecasts S. Korea’s economic growth at 2.5% for this year, compared to Japan’s modest 0.3% growth. Additionally, Japan’s per capita GDP in dollar terms may appear lower due to the ongoing weakness of the Japanese yen, which has depreciated more significantly than the S. Korean won, even earning the label “super yen weakness” among analysts.
The IMF has also projected that S. Korea’s per capita GDP will reach $37,675 in 2024, continuing to outpace Japan’s estimated $33,234. By 2027, the IMF expects S. Korea’s per capita GDP to surpass the $40,000 mark for the first time, a milestone that reflects the nation’s steady economic growth trajectory.
