Export cargo loading at Busan Port. yunhap news
It was found that Korea’s exports in July decreased the fourth most among the 37 member countries of the Organization for Economic Co-operation and Development (OECD), following Norway, Estonia, and Lithuania. The decline in imports was the largest among the 37 member countries. Our overall trade volume is shrinking faster than other countries. According to the OECD’s monthly trade statistics on the 24th, Korea’s exports in July decreased by 15.5% compared to a year ago. Among the 37 OECD member countries (excluding Colombia), this is the fourth largest decrease following Norway (-50.2%), Estonia (-19.4%), and Lithuania (-16.4%). When narrowing down to the seven countries in the ’30-50 Club’ with a per capita income of more than $30,000 and a population of more than 50 million, Korean exports showed the largest decline. Korea’s export decline ranked second among OECD member countries in December (-10.1%) and January (-15.8%) of last year, and since then, except for last June (-7.1%, 17th place), the decline in exports has continued for more than half a year. It is impossible to get out of the top 4. The reason for the decline in exports is Korea’s economic structure, which is highly dependent on China. China is Korea’s largest trading partner, accounting for 20.9% of total trade (January to July of this year). As China’s economic recovery, which resumed economic activities after the COVID-19 lockdown, is slower than expected, our exports are also not recovering. Exports to China have been decreasing compared to the same period last year for 14 months since June 2022. Imports are decreasing faster than exports. Korea’s July imports decreased by 25.4% compared to the same month last year. This is the largest decline among the 37 OECD countries. It is also the only country where imports have decreased by more than 20%. The main reason for the decrease in imports is the decline in energy and raw material prices. July imports of crude oil, gas, and coal, which account for 20% of our imports, decreased by 47% compared to a year ago. The decrease in imports of raw materials and intermediate goods for producing export products also played a role. In July, imports of items excluding energy, such as semiconductors, steel products, and semiconductor equipment, also decreased by 16.8% compared to the same period last year. The sluggish domestic economy and exports also affected the decline in imports. A significant decrease in exports and imports could reduce the vitality of the Korean economy, which relies on foreign trade. There are concerns that a decline in export trade could cast a cloud over the government’s outlook for the ‘economic downturn’ (the economy is bad in the second half of the year and good in the second half of the year). Reporter Ahn Tae-ho eco@hani.co.kr
2023-09-24 06:23:11
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