Will the Export Growth Trend Continue in February... The Variable Is the Decrease in Operating Days

by Ju Sangdon

Published 12 Feb.2024 10:30(KST)

If exports increase in February compared to the same period last year, the export growth trend that began in October last year will continue for five consecutive months. However, the shorter number of working days this month is considered a variable.

The Korea Customs Service will announce the export-import status from the 1st to the 10th of this month.

Exports in January this year amounted to $54.69 billion, an 18% increase compared to $46.34 billion in January last year. This double-digit export growth rate is the first in 20 months since May 2022, when it was 21.4%. Recent export trends also showed continuous growth for four months: 4.9% in October, 7.4% in November, and 5.0% in December.

Considering the number of working days, the average daily export value was $2.28 billion, a 5.7% increase from $2.16 billion in January last year.

The export growth was led by the semiconductor sector. Semiconductor exports reached $9.37 billion, increasing for three consecutive months following $9.52 billion in November and $11.03 billion in December.

Export containers are being loaded onto a ship at Busan North Port. Photo by Jinhyung Kang aymsdream@

Among the 15 major export items, exports of 13 items increased. Representative items include general machinery (14.5%), home appliances (14.2%), displays (2.1%), and ships (76.0%). Computer exports increased by 37.2%, breaking the negative trend that had continued for 18 months since June 2022.

Imports last month amounted to $54.39 billion, a 7.8% decrease. Energy imports decreased by 16.3% overall due to a 6.0% increase in crude oil but declines in gas (-41.9%) and coal (-8.2%). Non-energy imports shrank by 4.7%. The trade balance recorded a surplus of $300 million, marking eight consecutive months of surplus since June last year.

However, in February, the reduction in working days due to the Lunar New Year holiday is unavoidable. The number of working days this month is 20.5, 1.5 days fewer than 22 days in the same period last year. Earlier, exports from January 1 to 20 also decreased by 1.0% due to 0.5 fewer working days. Considering the number of working days, the average daily export value was $2.15 billion, a 2.2% increase compared to the same period last year.