August Export Volume and Value Index Decline Together for 5 Consecutive Months

[Asia Economy Reporter Kim Eunbyeol] Both the export volume index and export value index declined in August. This marks five consecutive months of year-on-year declines.

According to the "August Trade Index and Terms of Trade" released by the Bank of Korea on the 25th, the export volume index last month was 104.84 (2015=100), down 3.6% compared to the same month last year. This is the fifth consecutive month of decline since April. The rate of decline also widened compared to July (-1.1%).

The export volume index was influenced by increases in chemical products, but decreases in transportation equipment, coal, and petroleum products.

The export value index was 94.58, down 9.2% year-on-year. The export value index has continued to decline for six consecutive months since March. While electrical equipment increased, decreases in transportation equipment, coal, and petroleum products led to the decline.

The import volume index in August fell 4.8% year-on-year, as increases in machinery and equipment, computers, electronics, and optical devices were offset by decreases in mining products and primary metal products. The import value index dropped 15.9% year-on-year, with increases in machinery and equipment, computers, electronics, and optical devices, but decreases in mining products, coal, and petroleum products.

The net barter terms of trade index, which represents South Korea's terms of trade, rose 6.7% year-on-year as import prices (-11.7%) fell more sharply than export prices (-5.8%). 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 much import volume South Korea can obtain per unit of export.

The income terms of trade index, which indicates the amount of goods that can be imported with total export value, rose 2.8% year-on-year as the export volume index declined but the net barter terms of trade index increased.

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