Current Account Surplus
"International Balance of Payments, Fiscal Soundness, and Economic Growth Rate All Relatively Favorable"
[Asia Economy Reporter Oh Ju-yeon] Prime Minister Han Duck-soo said on the 5th regarding the trade balance recording a deficit for four consecutive months, "The current situation is not easy, but it is not a situation that the public needs to worry about greatly."
On the same day, Prime Minister Han stated on Facebook, "Many people are worried about our economy as the cumulative trade deficit until July reached about 15 billion dollars."
Prime Minister Han cited the June 'Balance of Payments Statistics' announced by the Bank of Korea that day. According to it, the current account balance in June was recorded as a surplus of 5.61 billion dollars (approximately 7.3379 trillion won).
Prime Minister Han said, "Experts' view is that the statistics that accurately show the difference between a country's foreign currency income and expenditure is not the trade balance but the current account balance," adding, "The trade balance is based on customs clearance and tends to record imports higher compared to the current account balance."
He noted that in the first half of the year, the trade balance showed a deficit of about 10.3 billion dollars, but the current account balance recorded a surplus of about 24.7 billion dollars, saying, "Although the surplus in the current account balance has decreased due to the rise in international energy prices, it is by no means a small amount."
The current account balance in June recorded a surplus for the second consecutive month, but the surplus amount decreased by more than 3 billion dollars compared to a year ago.
Prime Minister Han said, "According to the Bank of Korea and others, it is expected that the current account surplus will be about 45 to 50 billion dollars by the end of the year," adding, "If international energy prices fall more than expected, a larger surplus is also possible."
He continued, "Our government has shifted its fiscal management policy focusing on fiscal soundness. The economic growth rate this year is also expected to maintain around 2.3%," emphasizing, "In conclusion, our economy is in a relatively favorable situation in terms of international balance of payments, fiscal soundness, and economic growth rate, and is heading in the right direction."
He added, "We are well aware of the pain of the people suffering from the triple hardships of high exchange rates, high prices, and high interest rates. If the people trust the government and stand together, I believe we will overcome this difficulty soon," and said, "The government will also steadily promote innovation, reform, and measures to stabilize people’s livelihoods."
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