Trade Deficit of $1.7 Billion from 1st to 20th This Month... Will the Three-Month Deficit Continue?

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Kwon Haeyoung] It has been revealed that the trade balance deficit from the 1st to the 20th of this month reached $1.679 billion. If the deficit continues through this month, it will mark three consecutive months of deficits. This is the first time since June 2008, when the global financial crisis occurred.

According to the Korea Customs Service on the 21st, the trade balance deficit from the 1st to the 20th was $1.679 billion, larger than the $1.542 billion deficit recorded during the same period last year.

During this period, imports amounted to $36 billion, an increase of 12.9% compared to the same period last year. This significant rise in import value is due to the surge in global energy prices combined with supply chain instability.

Exports reached $34.3 billion, up 13.1% from the same period last year. Considering the number of working days, the average daily export value increased by 17.2%. The number of working days during this period was 13.5, which is 0.5 days fewer than last year.

The recent trade balance deficit is mainly due to the sharp rise in raw material prices centered on energy sources such as crude oil, liquefied natural gas (LNG), and coal, which rely heavily on imports. Although exports performed well, the increase in energy import costs continues in line with rising oil prices. From the 1st to the 20th of this month, crude oil imports amounted to $4.886 billion, a 54.8% increase compared to the same period last year.

If this situation persists, concerns are growing that the so-called "twin deficits," where both the fiscal balance and the current account balance fall into deficit simultaneously, could become a reality this year.

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