Due to the Decline in International Oil Prices... Last Year's Current Account Balance with the US and the Middle East Significantly Improved

Hana Bank Regional International Balance of Payments
Current Account Surplus of $75.28 Billion... Surplus with the US at $33.16 Billion
Travel Balance Deficit Decreases and Investment Income Balance Increases

[Asia Economy Reporter Jang Sehee] As international oil prices fell, the goods balance in trade with the United States and the Middle East significantly improved last year. On the other hand, in trade with Southeast Asia, including China and Japan, the decline in exports was greater than the decline in imports.

According to the "2020 Regional Balance of Payments (Provisional)" released by the Bank of Korea on the 22nd, the current account surplus last year was $75.28 billion, up from $59.68 billion a year earlier. This is the largest record in five years since 2015.

The current account surplus in trade with the United States increased from $19.11 billion to $33.16 billion. In this regard, the Bank of Korea analyzed that the surplus in the goods balance expanded due to a decrease in imports of raw materials such as crude oil, while the travel account deficit decreased and the investment income account surplus increased.

The current account deficit in trade with the Middle East was $28.05 billion, significantly reduced from $53.03 billion a year earlier. This was due to a decrease in imports of raw materials such as crude oil.

The current account surplus in trade with China decreased from $25.96 billion to $16.97 billion, and the current account deficit in trade with Japan expanded from $19.02 billion a year earlier to $21.31 billion last year.

Meanwhile, in trade with Southeast Asia, South Korea recorded a current account surplus of $78.56 billion, significantly down from $83.17 billion a year earlier, due to sluggish exports of petroleum products and others.