June Export Volume Down 1.4%, Decline Significantly Slows... Import Volume Turns Up

Trade Index and Terms of Trade in June 2020

[Image source=Yonhap News]

[Asia Economy Reporter Kim Eun-byeol] As countries gradually ease lockdown measures due to the novel coronavirus infection (COVID-19), the decline in the export volume index in June has significantly narrowed.

According to the 'June 2020 Trade Index and Terms of Trade (Dollar Basis)' statistics released by the Bank of Korea on the 28th, the export volume index last month was 104.74 (2015=100), down 1.4% compared to the same month last year. Although it has been declining for three consecutive months, the rate of decline has significantly slowed compared to April (-13.2%) and May (-15.0%).

Kang Hwan-gu, head of the price statistics team at the Bank of Korea, stated, "The export volume index fell 1.4% year-on-year as chemical products and computers, electronics, and optical devices increased, but transportation equipment decreased." Agricultural, forestry, and fishery products fell by 0.7%, and manufactured goods by 1.4%, respectively.

The export value index recorded 92.64. Although computers, electronics, and optical devices increased, transportation equipment and coal and petroleum products decreased, resulting in a 10.5% decline compared to the same month last year. The export value index also saw a significant reduction in the rate of decline compared to April (-23.3%) and May (-25.2%).

During the same period, import volume rose 6.1% year-on-year as machinery and equipment, computers, electronics, and optical devices increased despite decreases in mining products and primary metal products. This marks a turnaround to growth after three months since March. The import value index fell 11.6%, continuing a three-month decline, but the rate of decline eased compared to last month (-20.8%).

The net barter terms of trade index, which indicates the quantity of imports that can be purchased with the proceeds from exporting one unit of goods, rose 9.0% year-on-year, marking an increase for three consecutive months. The June income terms of trade index rose 7.5% year-on-year as the export volume index (-1.4%) declined but the net barter terms of trade index (9.0%) increased, marking a turnaround to growth after three months.

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