Economy in Omnishambles

 

The Bank of Korea announced on June 1 that South Korea’s current account surplus for April this year is estimated at US$3.37 billion, less than half of the figure of US$7.73 billion recorded in April 2015. The estimate is a 27-month low in that the country’s current account surplus fell to as low as US$1.87 billion in January 2014. Likewise, the monthly exports fell 19.2% year on year to reach US$40.31 billion in April 2016.

Such a poor export performance is predicted to continue for the time being. According to the Ministry of Trade, Industry & Energy’s announcement released on the same day, the exports from South Korea totaled US$39.8 billion last month, down 6% from a year ago, and continued to drop for 17 months in a row.

Besides, the Statistics Korea announced that the consumer price index rose by only 0.8% from a year earlier last month after having increased by more than 1% for several months.

With both consumption and export on the decline, production is showing no signs of recovery as well. According to the Statistics Korea, South Korea’s total industrial output fell 0.8% between March and April this year while the average manufacturing capacity utilization for April, 71%, reached the lowest level since March 2009.

 

 

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