April export 24% ↓… The largest decline in 11 years, the trade balance became a deficit of $ 950 million

Exports fell sharply last month, some 11 years after the global financial crisis. Exports are relatively lower than imports, and the trade balance became a deficit in 99 months. There is concern that the global recession will drag on and that the trade deficit may continue next month.

According to the “Import and Export Trends in April” of the Ministry of Commerce, Industry and Energy, last month’s exports were $ 3.69 billion, 24.3% less than in the same period last year. This is the biggest drop since May 2009 (-29.4%). The average daily exports, taking into account the number of days worked, also fell 17.4% year-on-year.

By country, the decline has been large, especially in countries where the spread of new coronavirus infections (corona19) has begun. Exports to the United States, where economic blockades were hit by the Corona 19 coup, averaged $ 240 million per day, 5.6% less than in the same period last year.

In Europe, production and demand for plants contracted due to movement restrictions, and the average export value in April fell 4.9% a year. However, exports to China from China averaged less than $ 400 million for the first time in 10 years in February, but increased in April, showing a 3.7% recovery from the previous month.
By products, ships and petroleum products, auto parts and exhibits were greatly affected. On the other hand, exports of anticorrosive products such as hand sanitizers, dust-proof medical clothing and latex gloves (for surgeons) and computers, as well as computers (not face-to-face), exploded. The export of prepared foods, such as instant noodles for bread and kimchi, also increased significantly. Last month’s profit was $ 37.8 billion, 15.9% less than a year ago. The decrease in exports was greater than that of imports, resulting in a trade deficit of $ 950 million. As a result, the march of the trade surplus, which has continued since February 2012, has also stopped. However, the government interpreted the trade deficit as due to the fact that the Korean domestic market was better than other countries. This means that the decrease in imports was relatively small due to the normal operation of the manufacturing industry, since the Corona 19 quarantine was successful. “The trade deficit is a paradoxical result of some positive factors,” said Kim Yong-beom, Minister of Strategy and Finance, at the Innovation Growth Strategic Review Meeting.

However, the government predicted that exports will continue to be slow for now, as it is difficult to predict when the global economic contraction will end. An industry ministry official said: “The export environment is unlikely to melt this month, as major potential institutions are lowering the global economy and trade growth rates.”

Sejong = Reporter Song Chung-hyun [email protected]