January Export and Import Trade Indices Both Decline

[Image source=Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] Last month, the export-import trade indices all declined simultaneously.

According to the "January 2020 Trade Index and Terms of Trade" released by the Bank of Korea on the 26th, the export volume index last month was 106.00 (2015=100), down 2.9% compared to the same month last year.

In December of last year, the export volume index rose 7.7% year-on-year, marking an upward turn after eight months, but it has shifted back to a downward trend. Although the volume index for computers and electronic optical devices increased, declines in transportation equipment and chemical products led to the overall decrease.

The export value index also fell 9.4% year-on-year to 99.29. The export value index has been declining for 14 consecutive months. Export values showed decreases in transportation equipment and chemical products.

The import trade index also worsened. Last month, the import volume index was 113.39, down 4.1% year-on-year. The import volume index also turned downward compared to the previous month. The import value index (118.38) fell 5.8% year-on-year, marking nine consecutive months of decline. Although coal and petroleum products increased, primary metal products decreased.

The net commodity terms of trade index fell 5.0% year-on-year, declining for 26 consecutive months. The income terms of trade index, with both the export volume index (-2.9%) and net commodity terms of trade index (-5.0%) declining, dropped 7.8% year-on-year.

A Bank of Korea official stated, "It is understood that the January indicators have not yet been significantly affected by the impact of the novel coronavirus infection (COVID-19)."

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