In 1991, the economic growth rate showed signs of recovery. The GNP grew during the year 9.1 percent. However, most of this growth was attributed to an increase in domestic demand, particularly domestic consumption. Exports increased 10.3 percent compared to 1990, while the growth rate of imports increased 17.7 percent. The trade balance deteriorate rapidly to a US$7.0 billion deficit in 1991 from the US$4.6 billion surplus in 1989. In addition, price stability, which had served to boost Korea’s competitiveness, weakened. Consumer prices, which had risen on an annual average of 2-3 percent between 1984 and 1987, rose 9.3 percent in 1991.

Recent Economic Trends

		‘91	‘92	‘93	‘94. 1 ~ 6
GNP
GNP	Growth Rate in %	9.1	5.0	5.6	8.5
Manufacturing Sector	Growth Rate in %	9.1	5.1	5.0	10.0
Private Consumption	Growth Rate in %	9.5	6.6	5.7	7.2
Investment	Growth Rate in %	12.6	0.8	3.6	10.3
Equipment	Growth Rate in %	12.1	1.1	0.2	17.7
Prices
Producer Price	%	4.7	2.2	1.5	2.2
Consumer Price	%	9.3	6.2	4.8	6.2
Balance of Payments		7.0	2.2	1.9	1.6
Export	US$ bil.	69.6	75.1	81.0	43.1
Imports	US$ bil.	76.6	77.3	79.1	44.7
Current Account
Balance	US$ bil.	8.7	4.5	0.4	2.7

In 1992, the Korean economy rapidly cooled off, with the GNP growth rate dipping to 5.0 percent, influenced chiefly by blunted investment in capital goods. The consumer price index rose just 6.2 percent, and the deficit in the balance of payments also dropped to US$4.5 billion.