July Current Account Balance $8.21 Billion... Transport Balance Continues 'Record High' Streak (Update)

Bank of Korea 'July 2021 Balance of Payments (Preliminary)'
Current Account Surplus for 15 Consecutive Months

[Image source=Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] The current account balance posted a surplus for the 15th consecutive month in July, supported by continued export growth and the recovery of international transportation such as maritime cargo. The transportation balance recorded an all-time high surplus.

According to the "July 2021 Balance of Payments (Provisional)" released by the Bank of Korea on the 7th, the current account surplus in July reached $8.21 billion, expanding by $1.19 billion compared to the same month last year. The current account has maintained a surplus for 15 consecutive months.

As a result, the cumulative current account surplus from January to July this year amounted to $52.55 billion.

The increase in maritime cargo transportation income led to a significant surplus in the transportation balance, which in turn improved the service balance, positively impacting the current account balance.

The service balance deficit in July was $80 million, with the deficit narrowing by $1.22 billion compared to the same month last year due to improvements in the transportation balance. In particular, the transportation balance surplus reached $1.59 billion, expanding by $1.59 billion from $10 million in the same month last year, marking the largest surplus ever recorded.

Transportation income, centered on maritime cargo transportation income, was recorded at $4.5 billion. The Shanghai Containerized Freight Index (SCFI) in July rose by 284.5% compared to the same month last year.

The goods balance surplus was $5.73 billion, with the surplus narrowing by $1.29 billion compared to the same month last year.

Exports reached $54.31 billion, increasing by $11.32 billion compared to the same month last year, as export growth continued across most items and regions due to the economic recovery of major countries. Imports also rose significantly to $48.58 billion, up by $12.6 billion compared to the same month last year. This increase was driven by rising raw material prices, continued improvement in facility investment, and expanded consumption of durable goods, leading to increased imports of raw materials, capital goods, and consumer goods.

Customs-based imports in July increased by 66.1% for raw materials, 16.7% for capital goods, and 20.9% for consumer goods compared to the same month last year.

The financial account, which indicates capital inflows and outflows, showed a net asset increase of $6.56 billion.

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