Trade deficit for seven months in 25 years… Semiconductor exports Tuk
In October, the trade balance recorded a deficit. It’s 7 months. It is the longest deficit in 25 years since the 1997 International Monetary Fund (IMF) Foreign Exchange crisis has been in a deficit for five consecutive months. Even exports have been reduced. Energy prices have excelled, resulting in an increase of nearly 10%.
The Ministry of Trade, Industry and Energy announced on the 1st that last month, exports were tentatively aggregated to $52.8 billion, down 5.7% from a year ago. Imports increased 9.9% to $59.18 billion.
The trade balance recorded a $6.7 billion deficit. It has been in the red for seven months since April. He has made a deficit for more than six consecutive months in 25 years since January-May 1997.
Exports also broke. The growth rate has fallen to one digit since June (5.4%). It increased only 2.8%in July, 6.6%in August, and 2.8%in September.
By item, semiconductor exports, which are responsible for one-fifth of Korea’s exports, decreased 17.4%. Petrochemicals decreased by 25.5%. As the global economy has subsided and demand has decreased, semiconductors, petrochemicals, and wireless communication exports have fallen, the Ministry of Industry explained. The exports of automobiles and secondary batteries achieved the number one record in October. Automotive exports surged 28.5%, while secondary batteries (16.7%) and petroleum products (7.6%) also increased to around 10%.
By region, exports to China and the Southeast Asian Union (ASEAN), where the demand for intermediate goods shrank, decreased. China’s exports to China decreased by 15.7% and ASEAN exports by 5.8%. Exports to the United States increased 6.6%, and the European Union (EU) also increased 10.3%.
Imports have maintained an increase in energy. Energy imports such as crude oil, gas, and coal increased the total imports to $1.53 billion, up $4.6 billion from a year ago.
Lee Chang-yang, Minister of Industry, said, The Russian and Ukrainian war continues and prices are not easy to increase exports worldwide. In addition, the public sector, which has a lot of energy demand, will save the public sector.