US$37,510 vs. US$34,980
The World Bank announced on Oct. 16 that South Korea’s nominal GNI per capita was US$34,980 in 2021, when that of Italy was US$37,510. For reference, in 2020, South Korea (US$32,930) topped Italy (US$32,380) to outdo a G7 state for the first time ever.
In 2020, Italy’s economic growth rate was negative 8.9 percent amid COVID-19. In 2021, however, the rate jumped to 6.7 percent. The South Korean economy showed a slower recovery by posting negative 0.7 percent and 4.1 percent.
Italy’s nominal GNI per capita is likely to be higher than South Korea’s this year as well. This is mainly because the value of the South Korean currency has dropped in relation to interest rate hikes and the global semiconductor industry, one of those in which South Korea particularly excels, is slowing down rapidly.
In addition, Taiwan is likely to outperform South Korea this year. The IMF recently estimated South Korea’s and Taiwan’s GDPs per capita at US$34,767 and US$36,834, respectively. The GNI is the sum of the GDP and items such as overseas labor income, dividend, etc. Taiwan’s GNI is expected to exceed South Korea’s for the first time since 2003.