Government: "Last Year's Current Account Surplus Ranked 6th All-Time... Expected to Shrink Slightly This Year"

The Largest Surplus in Two Years Since 2018

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] On the 5th, the government evaluated the current account surplus for last year, stating that "the goods, services, and income accounts all improved, achieving the sixth-largest surplus on record, significantly exceeding initial forecasts."

According to the "2020 Balance of Payments (Provisional)" announced by the Bank of Korea on the same day, the current account surplus last year recorded $75.28 billion, expanding the surplus by $15.6 billion compared to the previous year. This is the largest current account surplus in two years since 2018 ($77.4665 billion). Although annual exports decreased last year due to the COVID-19 shock, the sharp drop in international oil prices led to a reduction in imports as well, improving the goods account.

The government stated, "Compared to major countries, we performed remarkably well, playing a safety net role for our economy amid the unprecedented COVID-19 crisis."

However, the government forecasted that the current account surplus would somewhat shrink this year. It explained, "While the surplus may narrow somewhat due to domestic demand activation and oil price recovery, the stable surplus trend is expected to continue."

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