September Export Volume and Value Indexes See Largest Increase in 1 Year and 11 Months

[Image source=Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] Last month, the export volume index and export value index rose by the largest margin in 1 year and 11 months.

According to the "September Trade Index and Terms of Trade" released by the Bank of Korea on the 29th, the export volume index in September was 125.82 (2015=100), up 13.9% compared to the same month last year. Due to the impact of the novel coronavirus disease (COVID-19), the export volume index had been declining since last April but turned to an increase after 6 months. Although coal and petroleum products decreased, computers, electronic and optical equipment (10.1%), and chemical products (28.0%) increased, showing an upward trend compared to the same month last year.

The export value index also rose 8.0% year-on-year, turning to an increase after 7 months. Both the export volume index and value index recorded the largest increase since October 2008, 1 year and 11 months ago. In October 2018, the export volume index rose 23.7%, and the value index increased by 27.8%.

The import volume index in September rose 11.2% year-on-year as mining products, computers, electronic and optical equipment increased, although primary metal products decreased. It turned to an increase after falling 4.7% in August. However, the import value index fell 0.1% year-on-year, showing a decline for six consecutive months.

Meanwhile, the net barter terms of trade index, which represents South Korea's terms of trade, rose 5.6% year-on-year. The net barter terms of trade index indicates how much of other countries' goods can be purchased with the money received by exporting one product to another country. This is the result of import prices (-10.2%) falling more sharply than export prices (-5.2%) based on customs clearance timing.

The income terms of trade index, which shows the quantity of goods that can be imported with total export value, rose 20.3% year-on-year as the export volume index increased by 13.9% and the net barter terms of trade index rose by 5.6%.

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