The Bank of Korea Announces 'February Trade Index and Terms of Trade'
[Asia Economy Reporter Seo So-jeong] Recently, due to the sharp rise in raw material prices, South Korea's import value in February increased by more than 25% compared to a year ago. As a result, South Korea's terms of trade have deteriorated for 11 consecutive months.
According to the 'February Trade Index and Terms of Trade' statistics released by the Bank of Korea on the 30th, last month's import value index was 148.55 (2015=100 base), up 25.5% from a year earlier. This marks the 15th consecutive month of increase since December last year (2.9%).
By item, among manufactured goods, the import value index for coal and petroleum products rose by 65.4%, and mining products increased by 44.8%. Agricultural, forestry, and fishery products (35%) and primary metal products (24.6%) also showed high growth rates.
The import volume index was 117.09, 3% higher than a year ago, marking 18 consecutive months of increase. Based on the import volume index, transportation equipment (30.3%) and computers, electronics, and optical devices (20.5%) showed high growth rates. Son Jin-sik, head of the price statistics team at the Bank of Korea, explained, "Although mining products and primary metal products decreased, computers, electronics, optical devices, and transportation equipment increased, resulting in a 3% rise compared to the same month last year."
The export value index (128.34) and export volume index (115.36) also rose by 19.7% and 6%, respectively, compared to the same month last year. Due to the rise in international oil prices, the export value index for coal and petroleum products jumped by 65.4%. Mr. Son said, "The February export volume index rose 6% from a year ago as primary metal products decreased but computers, electronics, optical devices, and transportation equipment increased."
The net goods terms of trade index stood at 87.69, down 7.4% from a year earlier. Import prices rose more sharply than export prices, resulting in an 11-month decline.
The income terms of trade index fell by 1.8% compared to the same month last year, turning downward for the first time in two months, as the export volume index rose (6%) but the net goods terms of trade index declined (-7.4%).
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