September Trade Deficit of $3.77 Billion...Continues for 6 Consecutive Months
Exports at $57.46 Billion...2.8% Increase Year-on-Year
Imports at $61.23 Billion...Energy Accounts for 30%
Trade Deficit of 4.1 Billion Dollars from September 1 to 20... Possibility of Six Consecutive Months of Deficit for the First Time in 25 Years (Busan=Yonhap News) Reporter Kang Deok-cheol = On the afternoon of the 21st, container handling operations are underway at the Sinsundae Pier of Busan Port. Since the beginning of September until the 20th, exports have decreased compared to the same period last year, while imports have increased, raising the possibility of a trade deficit continuing for six consecutive months for the first time in 25 years. According to the Korea Customs Service on the 21st, the export amount (provisional customs clearance basis) from the 1st to the 20th of this month was 32.958 billion dollars, down 8.7% from the same period last year. During the same period, imports amounted to 37.1 billion dollars, an increase of 6.1%. 2022.9.21
kangdcc@yna.co.kr
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[Asia Economy Sejong=Reporter Lee Junhyung] The trade balance has recorded a deficit for six consecutive months for the first time in 25 years since 1997. The cumulative trade deficit this year has already approached $30 billion. Analysts say that the export sector, which is the backbone of the Korean economy, is showing warning signs.
According to the Ministry of Trade, Industry and Energy on the 1st, last month's trade balance recorded a deficit of $3.77 billion. Exports increased by 2.8% year-on-year to $57.46 billion, while imports rose by 18.6% to $61.23 billion. As a result, the trade balance has continued to show a deficit for six consecutive months since April this year. It is the first time in about 25 years since May 1997 that the trade balance has recorded a deficit for six consecutive months.
The accumulated trade deficit from the beginning of this year to last month is about $28.9 billion, the largest since trade statistics began in 1956. At this pace, the cumulative trade deficit could exceed $30 billion within this month. There is also growing expectation that the annual trade deficit could surpass $30 billion. The previous annual record was $20.6 billion, recorded in 1996 just before the foreign exchange crisis.
The main culprit of the trade deficit is energy prices. Last month, imports of the three major energy sources?crude oil, gas, and coal?amounted to $17.96 billion, accounting for about 30% of total imports. Compared to the same period last year ($9.91 billion), this is an increase of 81.2%. As a result, imports have exceeded $60 billion for seven consecutive months since March.
This explains why the trade balance continued to show a deficit despite the strong export performance. In fact, last month's export amount ($57.46 billion) recorded the highest performance ever for September. It was $1.56 billion more than the previous September record of last year ($55.9 billion). Exports of petroleum products (52.7%), automobiles (34.7%), and secondary batteries (30.4%) also set new records for September last month.
The trade deficit is not unique to Korea. Major countries with high energy import dependence, such as Japan and Italy, are also recording trade deficits. In Japan's case, the cumulative trade deficit from the beginning of this year to August reached 12.2 trillion yen, more than 20 times the amount of last year (600 billion yen).
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