The Bank of Korea Projects Trade Volume of 1 Trillion Dollars This Year

2022 Export Forecasted at 570 Billion Dollars

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Although South Korea's trade volume fell below $1 trillion last year for the first time in four years, the Bank of Korea forecasted that it will surpass $1 trillion again for two consecutive years in the coming two years.

According to the financial sector on the 10th, the Bank of Korea projected the new year's trade volume (based on customs clearance) to be $1.058 trillion. Exports are expected to increase by 8.5% from last year to $550 billion, and imports are forecasted to rise by 9.5% to $508 billion.

The Bank of Korea also anticipated that the trade volume in 2022 will reach $1.1 trillion, exceeding $1 trillion for two consecutive years. Exports in 2022 are predicted to reach $570 billion, and imports $530 billion.

Although the 'trade volume of $1 trillion' streak that lasted for three consecutive years from 2017 to the year before last was interrupted last year, it is expected to resume from the new year.

Last year, South Korea failed to achieve a trade volume of $1 trillion due to the spread of the novel coronavirus infection (COVID-19). According to the Ministry of Trade, Industry and Energy, the total annual exports last year were $512.85 billion, down 5.4% from 2019.

The total annual export amount exceeded $500 billion for four consecutive years but declined for the second consecutive year following a 10.4% decrease in 2019. Meanwhile, imports amounted to $467.23 billion, down 7.2%.

Last year, due to the global pandemic of COVID-19, major countries blocked air and sea routes, causing production disruptions and consumption contraction, which hindered exports of South Korea's representative products.

However, starting in the second half of the year, there was a gradual rebound, with exports increasing consecutively in November (4.1%) and December (12.6%). The total exports increased for two consecutive months for the first time in 25 months, and the double-digit growth recorded in December was the first in 26 months.

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