March Exports Down 0.2%, Turning Negative Again Due to COVID-19 Impact (Comprehensive)

[Asia Economy Reporter Kwangho Lee] Exports, which had turned positive last month after 15 months, declined again within a month due to the impact of the COVID-19 pandemic.

According to the 'March 2020 Export-Import Trends' announced by the Ministry of Trade, Industry and Energy on the 1st, last month's export value (customs clearance basis) was $46.91 billion, down 0.2% compared to a year earlier.

During the same period, imports were $41.87 billion, down 0.3%. The trade balance continued its surplus streak for 98 consecutive months at $5.04 billion.

Excluding working days, the average daily export was $1.954 billion, down 6.4%. The slight increase from -11.9% last month is seen as positive.

By item, major products such as semiconductors (-2.7%), general machinery (-3.8%), ships (-31.4%), petrochemicals (-9.0%), displays (-12.8%), steel (-6.5%), petroleum products (-5.9%), textiles (-8.8%), and home appliances (-0.3%) showed sluggish performance.

On the other hand, automobiles (3.0%), auto parts (0.6%), wireless communication (13.3%), and computers (82.3%) showed favorable trends.

The Ministry explained, "IT items and COVID-19 related consumer goods performed well due to the spread of non-face-to-face lifestyles, and supply chain disruptions in automobiles and machinery were also resolved." It added, "Petroleum products, petrochemicals, and textiles declined due to export destination shifts."

By country, exports decreased to China (-5.8%), ASEAN (-1.9%), India (-9.4%), the Commonwealth of Independent States (CIS) (-5.9%), and Latin America (-25.8%), while exports increased to the United States (17.3%), the European Union (EU) (10.0%), the Middle East (7.9%), and Japan (13.9%).

Despite initial concerns about a sharp contraction due to the spread of COVID-19, it is analyzed that exports performed well, nearly reaching last year's levels.

In fact, the export volume in March increased by 13.1% compared to the previous year, marking the largest increase in 17 months.

Among the top 20 export items, export volume increased in 14 items, including semiconductors (27.0%), petroleum products (33.8%), petrochemicals (17.5%), steel (14.8%), and auto parts (7.8%).

In particular, the export volume of semiconductors, Korea's main export item, has been increasing for nine consecutive months since July last year.

However, export prices fell by 11.7%. Major items with price declines include petroleum products (-22.7%), petrochemicals (-17.2%), textiles (-9.7%), and steel (-9.1%).

Seong Yun-mo, Minister of Trade, Industry and Energy, said, "The impact on exports was limited until March, but exports will not be easy going forward," adding, "We are reviewing related measures to resolve difficulties faced by export companies such as liquidity shortages, marketing, logistics, and entry restrictions, and to prevent damage to our export base in the mid to long term."

This content was produced with the assistance of AI translation services.