Korea to lag behind Taiwan in GDP per capita for 1st time in 22 years

Taiwan is expected to overtake Korea in per capita GDP this year, data showed Sunday. The reversal after 22 years is explained by Korea’s weakening growth momentum coupled with Taiwan’s rise as a technological and economic powerhouse in the global economy. As a benchmark for economic performance, higher per capita GDP often implies a more productive economy, but it does not measure income inequality. The development underscores Korea’s declining competitive edge, eroded by a lack of structural reforms to respond to rapid aging, industrial stagnation and currency weakness. Many say the difference between the two economies will widen, since Taiwan’s potential growth rate is likely to exceed 3 percent this year, underpinned by a global tech boom and semiconductor value chain, especially amid the rise of artificial intelligence (AI) and high-performance tech advancements. Korea, on the other hand, will see its figure drop below 2 percent, weighed down by the fallout of political uncertainties from former President Yoon Suk Yeol’s martial law declaration last December and a slowdownWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times