Korea: Trade surplus holds as imports contract more than exports
August 20, 2015
In July, exports totaled USD 46.6 billion, according to the Korea Customs Services. The reading represented a 3.4% year-on-year decrease. The result marked the seventh consecutive decline and was greater than the 2.6% loss tallied in June.
Meanwhile, imports totaled USD 38.8 billion in July, which was above the 36.7 billion recorded in June. The reading marked a substantial 15.3% annual decline and was the seventh straight double-digit contraction.
Given that imports fell relatively more than exports, the trade balance grew compared to the same month last year. The trade surplus came in at USD 7.7 billion in July, which was greater than the USD 2.3 billion surplus registered in the same month last year. The July trade surplus was smaller than the USD 9.9 billion surplus registered in June, which had marked the largest positive balance on record. In the 12 months up to July, the trade surplus reached USD 78.9 billion (June: USD 73.5 billion surplus), which represented the highest reading on record.
Author: Carl Kelly, Economist