Trade Deficit Emergency Amid Oil Price Shock
$1.39 Billion Deficit Over Ten Days This Month
Crude Oil and Gas Imports Increase Up to 85%
[Asia Economy Sejong=Reporter Dongwoo Lee] From the beginning of March to the 10th, the trade deficit recorded $1.39 billion. The average daily deficit based on operating days exceeded $210 million. This was due to a sharp increase in international oil prices and raw material costs caused by the Russia-Ukraine conflict during this period, which led to a surge of over 85% in import values of major items such as crude oil and gas.
According to the Korea Customs Service on the 11th, export and import values from the 1st to the 10th of this month were $18.735 billion and $20.125 billion, respectively. Accordingly, the trade deficit was $1.39 billion, a 20.1% increase compared to the same period last year (-$1.157 billion). The number of operating days during this period was 6.5 days, one day less than last year. Saturdays are counted as 0.5 operating days. Considering operating days, the average daily trade deficit was $213 million. The trade balance recorded deficits in December last year and January this year due to rising international oil prices but turned to a surplus in February.
The return to a trade deficit this month is largely due to the impact of fluctuating international oil prices and raw material costs caused by Russia's invasion of Ukraine. From the 1st to the 10th of this month, import values of energy-related items such as gas (87.0%), petroleum products (46.3%), and crude oil (43.6%) surged, increasing by $2.665 billion (15.3%) compared to the same period last year.
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During this period, export value was $18.7 billion, an increase of $2.431 billion compared to the same period last year. Looking at export performance alone, it was not bad. By item, exports of semiconductors (28.5%), petroleum products (98.8%), and auto parts (4.0%) showed favorable growth compared to the previous year, but exports of passenger cars (-28.0%) and wireless communication devices (-10.9%) decreased.
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