Korea - Household final consumption expenditure, etc. (% of GDP)

Household final consumption expenditure, etc. (% of GDP) in Korea was 48.78 as of 2016. Its highest value over the past 56 years was 84.60 in 1960, while its lowest value was 48.52 in 1988.

Definition: Household final consumption expenditure (formerly private consumption) is the market value of all goods and services, including durable products (such as cars, washing machines, and home computers), purchased by households. It excludes purchases of dwellings but includes imputed rent for owner-occupied dwellings. It also includes payments and fees to governments to obtain permits and licenses. Here, household consumption expenditure includes the expenditures of nonprofit institutions serving households, even when reported separately by the country. This item also includes any statistical discrepancy in the use of resources relative to the supply of resources.

Source: World Bank national accounts data, and OECD National Accounts data files.

See also:

Year Value
1960 84.60
1961 83.95
1962 84.08
1963 81.39
1964 83.80
1965 83.49
1966 78.40
1967 78.49
1968 75.24
1969 71.98
1970 73.45
1971 74.60
1972 72.96
1973 68.97
1974 68.91
1975 68.58
1976 64.41
1977 60.46
1978 59.78
1979 59.35
1980 62.15
1981 62.57
1982 61.38
1983 58.01
1984 56.14
1985 55.20
1986 52.92
1987 50.21
1988 48.52
1989 49.77
1990 49.71
1991 49.65
1992 50.35
1993 50.69
1994 51.16
1995 51.51
1996 52.45
1997 52.64
1998 49.61
1999 51.88
2000 53.65
2001 54.70
2002 55.43
2003 53.51
2004 51.26
2005 52.12
2006 52.70
2007 52.37
2008 52.35
2009 51.68
2010 50.32
2011 50.96
2012 51.37
2013 50.91
2014 50.35
2015 49.11
2016 48.78

Limitations and Exceptions: Because policymakers have tended to focus on fostering the growth of output, and because data on production are easier to collect than data on spending, many countries generate their primary estimate of GDP using the production approach. Moreover, many countries do not estimate all the components of national expenditures but instead derive some of the main aggregates indirectly using GDP (based on the production approach) as the control total. Household final consumption expenditure is often estimated as a residual, by subtracting all other known expenditures from GDP. The resulting aggregate may incorporate fairly large discrepancies. When household consumption is calculated separately, many of the estimates are based on household surveys, which tend to be one-year studies with limited coverage. Thus the estimates quickly become outdated and must be supplemented by estimates using price- and quantity-based statistical procedures. Complicating the issue, in many developing countries the distinction between cash outlays for personal business and those for household use may be blurred. Informal economic activities pose a particular measurement problem, especially in developing countries, where much economic activity is unrecorded. A complete picture of the economy requires estimating household outputs produced for home use, sales in informal markets, barter exchanges, and illicit or deliberately unreported activities. The consistency and completeness of such estimates depend on the skill and methods of the compiling statisticians.

Statistical Concept and Methodology: Gross domestic product (GDP) from the expenditure side is made up of household final consumption expenditure, general government final consumption expenditure, gross capital formation (private and public investment in fixed assets, changes in inventories, and net acquisitions of valuables), and net exports (exports minus imports) of goods and services. Such expenditures are recorded in purchaser prices and include net taxes on products.

Aggregation method: Weighted average

Periodicity: Annual

Classification

Topic: Economic Policy & Debt Indicators

Sub-Topic: National accounts