South Korea's Records Trade Surplus Amid Recovering Exports
The export downturn in South Korea slowed down during June, which is a promising sign for the country's economy. In addition, the exports of automotive & semiconductors also increased which has paved the way for recording a trade surplus this year.
South Korea's June Exports Recorded At $54 Billion
As per the statistics, the exports from the 4th largest economy of Asia dropped 6% in June when compared with a year earlier. Overall, the exports of South Korea during June were $54.24 only, which shows signs of recovery considering the drop in exports was 15.2% during May.
According to the relevant ministry, the trade balance improvement will likely stop in Jule & August. The reason behind this is attributed to seasonal factors. However, they are optimistic that the trade balance of South Korea will likely get back on track again after a few months.
The economists were expecting a 3% drop in exports, while the actual value turned out to be around 6%. But even that's an improvement considering the 15.2% decline in May.
The exports from the semiconductor industry also declined by 28%, which is one of the smallest declines of the last 8 months. On the other hand, the exports of automobiles increased by 58.3%, which supported the bottom line.
If we look at export data by county, the shipments from south Korea to China declined by 19%. Once again, this decline is one of the smallest in the last few months. Furthermore, the shipments to the USA only declined by 1.9%, while the exports to the EU jumped by 9.2%.
Imports which also contribute to the trade surplus narrowed by 11.7% during the same period. Over all, around $53.11 billion worth of exports were recorded which is a good sign for the country.
During June, South Korea's trade surplus was $1.13 billion which is a good sign considering the country faced deficit for 15 months in a row.