August Export Volume Increases for 12 Consecutive Months... Terms of Trade Worsen for 5 Months

Bank of Korea 'August Trade Index and Terms of Trade'

Busan New Port 4th Pier HPNT view [Image source=Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] As the global economy continues to recover, export volumes have shown an increase for 12 consecutive months. However, due to the rise in oil and raw material prices, terms of trade have declined for five consecutive months.

According to the "August Trade Index and Terms of Trade" released by the Bank of Korea on the 29th, the export volume index last month recorded 116.61, up 11.3% compared to the same month last year. This marks 12 consecutive months of growth since September last year.

Although coal and petroleum products, as well as agricultural, forestry, and fishery products, decreased, computers, electronics and optical devices, and machinery and equipment led the increase. Computers, electronics, and optical devices rose by 18.3%, and machinery and equipment showed a 21.2% increase.

The export value index also jumped 35.3% compared to the same month last year, continuing its upward trend for 10 consecutive months. Computers, electronics, and optical devices (36.0%) and chemical products (44.4%) saw significant increases.

The import volume index rose 13.5% year-on-year, marking 12 consecutive months of growth. Computers, electronics, and optical devices (15.9%) and primary metal products (43.8%) led the increase. The import value index also continued its upward trend for nine consecutive months, rising 45.2% compared to the same month last year. Mineral products (89.8%) and primary metal products (103.8%) increased.

The net barter terms of trade index for August recorded 91.94, down 5.0% compared to the same month last year, marking five consecutive months of decline. The net barter terms of trade index is calculated by dividing the export price index by the import price index for the given month. While import prices rose 27.9%, export prices increased by 21.5%, resulting in a decline in the net barter terms of trade index compared to the same month last year.

Choi Jin-man, head of the price statistics team at the Bank of Korea, said, "Due to the rise in international oil prices and raw material prices, import prices increased more than export prices, causing the net barter terms of trade index to decline."

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