January Export Prices Down 3% Due to Economic Slump and Exchange Rate Decline... Import Prices Also Fall

Export and Import Prices Decline for Three Consecutive Months

[Asia Economy Reporter Seo So-jeong] Last month, the export price index fell by 3% compared to the previous month due to the impact of the global economic slowdown and the decline in the won-dollar exchange rate. The import price index also continued its downward trend for the third consecutive month as the won-dollar exchange rate fell.

According to the Bank of Korea on the 15th, the export price index (based on the Korean won) in January fell by 3.0% compared to the previous month. This was due to the effects of the global economic slowdown centered on semiconductors and the exchange rate decline. Although the rate of decline narrowed from 6.1% in one month to 3.0%, it has been falling for three consecutive months since November last year.

The export price based on contract currency, which limits the exchange rate effect, rose by 0.5% compared to the previous month. Last month, the average won-dollar exchange rate was 1,247.25 won, down 4.7% from the previous month (1,296.22 won).

Agricultural, forestry, and fishery products fell by 2.1% compared to the previous month. Manufactured goods fell by 3.0% compared to the previous month, as coal and petroleum products rose, but chemical products, computers, electronics, and optical devices declined. By item, DRAM (-16.1%), ethylene (-13.4%), tire cords and tire fabrics (-7.5%) declined.

[Image source=Yonhap News]

The import price index (based on the Korean won) fell by 2.3% compared to the previous month. Import prices continued to rise in September and October last year but switched to a downward trend from November, showing a decline for three consecutive months. Although international oil prices rose, the import price fell compared to the previous month due to the decline in the won-dollar exchange rate.

However, compared to the same month last year, it rose by 1.7%. The import price based on contract currency, which limits the exchange rate effect, rose by 1.0% compared to the previous month.

The monthly average price of Dubai crude oil rose 4.1% from $77.22 per barrel in December to $80.42 last month.

Raw materials fell by 1.8% compared to the previous month, mainly in mining products, and intermediate goods fell by 2.4% as chemical products, computers, electronics, and optical devices declined. Capital goods and consumer goods fell by 2.4% and 3.0%, respectively, compared to the previous month. By item, propane gas (-12.7%), flat-panel display TVs (-11.8%), natural gas (LNG, -10.1%), and processed nuts (-8.5%) declined.

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