October Export Value Index Turns Down Again... Export Volume Rises for 2 Consecutive Months

[Asia Economy Reporter Eunbyeol Kim] South Korea's export volume increased for two consecutive months. However, the export value declined again.

According to the 'October 2020 Trade Index and Terms of Trade (Dollar Basis)' statistics released by the Bank of Korea on the 25th, the export value index last month fell by 3.5% compared to the same period last year, turning downward. Although the export value index rose in September for the first time in seven months, it declined again.

Kang Hwan-gu, head of the Price Statistics Team at the Economic Statistics Bureau of the Bank of Korea, stated, "The export value index turned downward as increases in computers, electronic and optical equipment were offset by decreases in coal and petroleum products, machinery, and equipment."

However, the export volume index rose by 0.3% compared to the same month last year, continuing its upward trend. Kang said, "Although the increase in the export volume index was smaller than the previous month (13.4%), considering that the number of working days in October decreased, the export volume is actually increasing."

The import value index and import volume index showed mixed results. The import value index in October fell by 6.7% compared to the same month last year, declining for seven consecutive months, while the import volume index rose by 4.3%, marking two consecutive months of increase.

The import volume index increased year-on-year due to rises in computers, electronic and optical equipment, and machinery and equipment, despite decreases in primary metal products and coal and petroleum products. The import value index decline was led by decreases in mining products and coal and petroleum products.

The net goods terms of trade index in October rose by 7.6% year-on-year and 0.8% month-on-month, as import prices (-10.6%) fell more sharply than export prices (-3.7%).

The income terms of trade index increased by 7.9% year-on-year, supported by rises in the export volume index (0.3%) and the net goods terms of trade index (7.6%).

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