COVID-19 Causes April Exports to Drop 24.3%... Ministry of Industry Says "Export Slump is a Global Phenomenon" (Update)

Trade Balance Turns Negative After 99 Months
Ministry of Industry: "Impact of Sharp Demand Drop and Base Effect"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] Exports last month fell 24.3% year-on-year due to the impact of the novel coronavirus infection (COVID-19).

According to the Ministry of Trade, Industry and Energy on the 1st, exports in April recorded $36.92 billion, down 24.3% from the same month last year. Imports were $37.87 billion, down 15.9%. As a result, the trade balance showed a deficit (-$950 million) for the first time in 99 months.

Regarding this, the Ministry explained, "The decrease was due to a sharp drop in global demand caused by the full-scale spread of COVID-19, fewer working days, and a reverse base effect."

Last month, the number of working days was 22, two days fewer than in April last year. Also, exports in April last year reached $48.78 billion, the highest level of the year.

The Ministry stated, "While exports to China were mainly sluggish in February and March, in April exports decreased across all regions due to worsening conditions in major markets such as the United States, the European Union (EU), and ASEAN." It added, "The export slump caused by COVID-19 is a global phenomenon," and "Exports in April are expected to be difficult for all major countries."

However, it reported that biohealth products (29.0%), including Korean-made diagnostic kits favored last month, and computer exports (99.3%), which showed steady server demand, performed well.

The trade deficit, which appeared for the first time in 99 months since January 2012, was analyzed as a temporary phenomenon caused by the COVID-19 situation.

The Ministry said, "Our manufacturing industry is operating normally compared to major countries," and "A temporary trade deficit occurred because the rate of decrease in imports was lower than that of exports."

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