July Exports Down 7.0%... "Recovering from the COVID Shock" (Update)

Ministry of Industry Announces 'July Export-Import Trends'
Export Value Hits $40 Billion After Four Months
Daily Average Exports and Key Market Performance Improve

[Asia Economy Reporter Kim Bo-kyung] Our exports are gradually recovering from the impact of the novel coronavirus disease (COVID-19). The export decline rate in July fell to single digits for the first time in four months, and the export volume rebounded to the $40 billion level.

According to the 'July Export-Import Trends' announced by the Ministry of Trade, Industry and Energy on the 1st, last month's exports recorded $42.83 billion, down 7.0% compared to the same month last year. This is the first time since April, when the impact of COVID-19 was felt, that the export decline rate has narrowed to single digits.

In April (-25.5%), May (-23.7%), and June (-10.9%), exports fell by double digits, directly hit by the spread of COVID-19.

Major export indicators also showed signs of recovery after four months. The export volume entered the $40 billion range, and the average daily export amount rose from the $1.6 billion level over the past four months to $1.71 billion last month.

The performance of the three major export markets?China, the United States, and the European Union (EU)?also showed improvement.

Looking at exports by country, the United States increased by 7.7% compared to the same month last year, turning positive for the first time since COVID-19. China saw an increase for two consecutive months (June 9.6%, July 2.5%). The EU's decline rate dropped to the low teens.

July imports decreased by 11.9% from the same month last year to $38.56 billion. As a result, the trade balance recorded a surplus of $4.27 billion. The trade balance has been in surplus for three consecutive months.

An official from the Ministry of Trade, Industry and Energy stated, "Despite the global trade and major countries' exports being sluggish due to the impact of COVID-19, our exports have shown a recovery trend for three consecutive months."