S. Korea likely to witness trade deficit for time being: BOK

한은 '당분간 무역수지 적자 흐름 이어질 것'

The Bank of Korea says the country's trade deficit is expected to continue for a little while longer.
As before, it says this is mainly due to higher energy costs, which also mean higher import prices.
Choi Min-jung reports.
South Korea is likely to continue to see a trade deficit for the time being.
The Bank of Korea explained Tuesday,.. that this is due to slower growth in the export sector,.. and an increase in imports.
It also said this comes at a time when global oil prices are high, and during a global economic slowdown.

South Korea logged a total deficit of 24-point-7 billion U.S. dollars from January to August this year.
This is a drop of more than 45 billion dollars compared to the same time last year.
Almost 80-percent is due to increased prices of energy and petroleum products.
According to the central bank, the country's trade deficit could decline by 9 billion U.S. dollars a year,.. if global oil prices drop by a yearly average of 10 dollars.

It also added that the trade deficit is likely to continue with exports to China on the decline due to that country's economy slowing down.
A decline in exports for mobile phones, displays, chips, and automobiles, as well as an increase in overseas production of semiconductors are also contributing factors.

The central bank also pointed out that other countries heavily relying on energy imports are also suffering from increasing trade deficits.
It added that South Korea's trade balance could improve,.. if prices for raw materials stabilize.
Choi Min-jung, Arirang News.

#southkorea #trade #arirang_news

2022-09-06, 17:00 (KST)