[Economic Outlook] Social Distancing Adjustment Plan to be Announced on the 31st... How Much Has the Current Account Surplus Increased?

[Asia Economy Reporter Kwon Haeyoung] This week, the government will announce an adjustment plan for the 'social distancing' levels to be applied from February to prevent the resurgence of COVID-19. Various economic indicators, such as the current account balance showing how much money South Korea earned from exports in December last year, and the export-import trends for the first month of the new year, will also be released consecutively. Recent consumer price trends will also be disclosed.

The Central Disaster and Safety Countermeasures Headquarters will announce the social distancing adjustment plan to be applied after February 1 on the 31st. Currently, level 2.5 social distancing measures are in place in the metropolitan area, and level 2 measures are implemented in non-metropolitan areas. The key issue is whether to extend or ease the nationwide ban on private gatherings of five or more people. The main contents of the special quarantine measures for the Lunar New Year holiday are also expected to be announced.

On the 1st of next month, the Ministry of Trade, Industry and Energy will announce the export-import trends for January, the first month of the new year. Export value has increased by more than 10% compared to the previous year up to the 20th of this month, and this trend is expected to have continued. According to the Korea Customs Service, export value from the 1st to the 20th of this month was $28.2 billion, an increase of 10.6% ($2.7 billion) compared to the same period last year. The average daily export value, considering working days, also increased by 10.6% to $1.95 billion.

By item, semiconductors (11.6%), passenger cars (15.7%), and wireless communication devices (60.5%) increased. On the other hand, petroleum products (-45.6%) and computer peripherals (-1.1%) decreased. By country, exports to China (18.6%), the United States (18.6%), Vietnam (13.4%), and the European Union (EU - 16%) increased, while exports to Japan (-10.9%) and the Middle East (-15.1%) decreased.

Imports from the 1st to the 20th amounted to $28.6 billion, an increase of 1.5% ($420 million) compared to the same period last year.

The Statistics Korea will announce the 'January Consumer Price Trends' on the 2nd of next month. Consumer prices rose by 0.5% compared to the previous year last month. It is expected that the disappearance of the telecommunications fee support effect, which was reflected in the fourth supplementary budget bill last year, has increased the rate of consumer price inflation.

The Bank of Korea will announce the 'December 2020 International Balance of Payments (provisional)' on the 5th of next month. Attention is focused on whether the current account balance will continue its eight-month streak of surpluses. Despite COVID-19, the current account balance has shown a surplus for seven consecutive months since May last year, supported by the strong performance of major export items such as semiconductors.

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