Korea's Export Volume and Value Index Decline Together for 4 Consecutive Months

Bank of Korea 'July Trade Index and Terms of Trade'

[Image source=Yonhap News]

[Asia Economy Reporter Kim Eun-byeol] South Korea's export volume index and export value index have both declined for four consecutive months. However, the decline narrowed for the second consecutive month due to increased semiconductor exports, showing signs of improvement.

According to the "July Trade Index and Terms of Trade" released by the Bank of Korea on the 26th, last month's export value index was 100.60 (2015=100), down 8.6% compared to the same month last year. This marks a decline for five consecutive months since March. However, the decline narrowed for the second consecutive month following May (-25.2%) and June (-10.5%). While computers, electronics, and optical devices increased, transportation equipment, coal, and petroleum products decreased.

The export volume index was 112.86, down 0.7% compared to the same month last year, continuing a four-month decline since April (-13.2%). Chemical products, computers, electronics, and optical devices rose, but machinery and equipment, as well as transportation equipment, fell. Similar to the export value index, the decline narrowed compared to the previous month (-1.6%).

Last month's import volume index was 115.18, up 0.5% compared to the same period last year, marking two consecutive months of increase. On the other hand, the import value index recorded 107.21, down 11.1%, mainly due to mining products and petroleum products.

The net barter terms of trade index (95.77), which indicates South Korea's terms of trade, rose 4.2% compared to the same month last year. The net barter terms of trade index is the ratio of the price of one unit of export goods to the price of one unit of import goods, serving as an indicator of how many goods South Korea can import with one unit of export. This result occurred because import prices at the customs clearance point (-11.6%) fell more sharply than export prices (-7.9%).

The income terms of trade index (108.09), which represents the quantity of goods that can be imported with total export value, rose 3.4% compared to the same period last year as the net barter terms of trade index (4.2%) increased despite a decline in the export volume index (-0.7%).

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