Export from August 1-20 down 7%... Failure to Turn Positive by Mid-3rd Quarter (Update)

Customs Service Confirmed Monthly Performance Declines for 5 Consecutive Months
August Total Performance Likely to Decrease...Working Days Until Month-End Down 1.5 Days YoY

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chaeseok] Export performance from August 1 to 20 also recorded a negative figure. Export value during this period amounted to $23.1 billion, down 7% compared to the same period last year. The average daily performance, considering the number of working days, remained at $1.65 billion, a 3.7% decrease from the previous year.

August is a vacation season, so export performance is often relatively poor, but this year there is a possibility of long-term shutdowns in various industries due to heavy rains and the novel coronavirus disease (COVID-19).

The government had confidently stated that if exports rebound, achieving positive economic growth in the third quarter would be possible, but export performance continued its negative streak.

On a monthly basis (customs office confirmed figures), exports increased by 4.3% in February, then declined by -0.7% in March, -25.1% in April, -23.6% in May, -10.9% in June, and -7.1% in July, marking five consecutive months of decline. The export performance from August 1 to 20 also failed to turn positive.

Earlier, on the 14th, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said at a luncheon meeting with foreign reporters, "If exports improve from now on, positive growth in the third quarter is fully possible."

The number of working days until the end of this month is 22, which is 1.5 days fewer than 23.5 days in August last year, making it difficult to expect a positive rebound.

According to the Korea Customs Service on the 21st, export value from August 1 to 20 was $23.1 billion, down 7% ($1.74 billion) from the same period last year. The number of working days was 14, 0.5 days fewer than 14.5 days in the same period last year.

The average daily export value, considering working days, was $1.65 billion, a 3.7% decrease compared to the same period last year.

Looking at major item performance, semiconductors (2.9%) and computer peripherals (99.4%) increased, while petroleum products (-39%), passenger cars (-10.1%), and wireless communication devices (-29.3%) decreased.

Among South Korea's three major export markets?China, the United States, and the European Union (EU)?only the United States showed an increase. China was down -0.2% compared to the same period last year, the EU was down -1.8%, and the United States increased by 6.2%. Canada (25.4%) increased, while Vietnam (-6.4%) and Japan (-9.7%) decreased.

Meanwhile, import value from August 1 to 20 was $23.3 billion, down 12.8% ($3.44 billion) compared to the same period last year. The trade balance recorded a deficit of $290 million.

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