Changwon Chamber of Commerce and Industry, Changwon First Half Export Up 2.8%, Import Up 6.1%

Impact of Chinese City Lockdowns Causes Sharp Decline in Exports of Major Intermediate and Capital Goods

[Asia Economy Yeongnam Reporting Headquarters, Reporter Song Jong-gu] The Changwon Chamber of Commerce and Industry in Gyeongnam conducted a survey on Changwon's export-import trends for the first half of 2022 based on export-import statistical data from the Korea International Trade Association and announced the results on the 27th.

In the first half of the year, Changwon City's export amount increased by 2.8% compared to the same period last year to $8.90616 billion, imports increased by 6.1% to $3.0962 billion, and the total trade volume increased by 3.6% to $11.91578 billion. Since the increase in exports was greater than that of imports, the trade surplus recorded $5.89653 billion, up 1.2% from the same period last year.

Looking at export-import performance by processing stage, intermediate goods exports amounted to $3.71451 billion (+1.2%), and imports were $2.0846 billion (+7.4%). Capital goods exports recorded $3.38492 billion (-4.0%), and imports were $550.99 million (-15.9%).

Additionally, primary products such as raw materials showed a significant increase with exports of $9.95 million (+11.0%) and imports of $167.45 million (+77.3%).

The major trading countries of Changwon City in the first half of 2022 were the United States (total trade volume $3.3869 billion, +9.6%), China ($1.73197 billion, -7.4%), Japan ($889.52 million, -0.1%), Germany ($545.98 million, +15.0%), and Vietnam ($489.89 million, +0.2%).

The slowdown in export recovery in the first half was due to a decrease in exports to China, which accounts for a high proportion of exports. The main reason was the significant contraction of industrial activity caused by city lockdowns in China due to the resurgence of COVID-19.

Above all, considering that Changwon's main exports to China are intermediate goods necessary for industrial production, if industrial production in China stops, it inevitably affects Changwon's export performance.

In fact, while exports to China decreased, exports of major products such as 'engines' (-57.9%), 'construction heavy equipment' (-52.0%), 'metal cutting machines' (-43.3%), 'auto parts' (-20.6%), and 'mineral processing machines' (-16.3%) declined.

To the United States, Changwon's largest trading partner and a country with a trade surplus, exports amounted to $2.9438 billion (+13.1%), imports were $403.1 million (-10.5%), resulting in a trade surplus of $2.507 billion.

An official from the Changwon Chamber of Commerce said, "Although Changwon's export performance had shown a rapid recovery due to the easing of COVID-19 restrictions, the significant decrease in exports to China has somewhat slowed the growth trend. On the other hand, imports, mainly of primary products (raw materials), continue to increase, adversely affecting the profitability of companies in the Changwon area, which could lead to a long-term decline in export competitiveness."

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