Real GNI up 9.2% in Q1, highest since records began in 1960

Nominal GDP growth also reaches 10.5%

President expects higher tax revenue, lower national debt ratio

President Lee Jae Myung makes air-quote gestures with his fingers while answering a question about the media at a press conference marking his first anniversary in office, held Monday at Cheong Wa Dae's state banquet hall. (Yonhap)
President Lee Jae Myung makes air-quote gestures with his fingers while answering a question about the media at a press conference marking his first anniversary in office, held Monday at Cheong Wa Dae's state banquet hall. (Yonhap)

By Seo Ji-yeon, The Herald Business

President Lee Jae Myung said Tuesday that South Korea's national income indicators hit record highs in the first quarter of this year and pledged to ensure the benefits of economic growth reach all citizens.

Writing on Facebook, Lee said real gross national income — a key measure of citizens' actual purchasing power — grew 9.2 percent quarter-on-quarter in the first quarter, the highest reading since related statistics were first compiled in 1960.

"I will do my utmost to ensure that South Korea's economic leap translates into growth for every citizen," he said.

GNI measures the total income earned by a country's residents through both domestic and overseas economic activity and is widely regarded as a leading indicator of the public's real purchasing power.

Lee also said nominal GDP growth came in at 10.5 percent quarter-on-quarter in the first quarter of this year.

"That is the highest in roughly 50 years, since 1976," he said, adding that growth figures for every quarter since the administration took office had been revised upward.

Lee also said the stronger economic performance would improve the government's fiscal position.

He said the national debt ratio is expected to fall significantly to the mid-to-upper 40 percent range this year, with tax revenue also set to rise sharply. "Not only will fiscal soundness be further strengthened, but our capacity to invest for future generations will also grow," he said.

He added that when the reinforcement of the national pension fund is also taken into account, "the finances of our community are far stronger than when this administration began."

Lee said it was equally important that improvements in economic indicators translate into a recovery that citizens can feel in their daily lives. "I will work to ensure that the fruits of economic growth do not remain confined to any particular segment of society, but connect to a better quality of life for all citizens," he said.


sjy@heraldcorp.com