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Since January 2012, South Korea has not had a trade deficit.
published:
The export value of Asia’s fourth largest economy fell 24 percent in April compared to April 2019. This is the largest decline in exports in South Korea since the financial crisis, writes Reuters.
In total, Koreans exported $ 36.9 billion, according to figures from the South Korean Ministry of Commerce. Imports also fell, but “only” 15.9 percent, resulting in a trade deficit of $ 0.95 billion.
According to the Financial Times, it is the first time in eight years that South Korea imports more than it exports.
South Korea is seen as a “weather cock” for international trade, and as the first country to come out with trade statistics, it is natural to assume that many other countries will also deliver weak export figures.
– May will be a very difficult month for Korean exports. We could possibly see the drop in shipping in May if the United States and Europe begin to normalize, Park Sang-hyun, chief economist at Hi Investment Securities, told Reuters.
Big Korean exporters like Samsung and SK Hynix have already strayed from their earnings forecasts, with the former already announcing that they expect a weaker result in the second quarter. This is due to a drop in sales of smart phones and televisions.
