Continuous Declines
The Bank of Korea announced on October 24 that South Korea is estimated to have recorded an export volume index of 135.9 last month, down 2.6% from a year ago. The reference value and year of the index are 100 and 2010, respectively.
Last month, South Korea’s primary industry product exports fell 11.4% from a year earlier. Likewise, the rate of decrease was 13.1% in the case of transport machinery exports and 4.1% when it comes to electrical and electronics equipment exports. Meanwhile, chemical product and nonmetallic mineral product exports increased 10.7% and 14.5%, respectively.
The country’s export value index dropped 45.1% year on year to 110.47 in September, continuing to decline for the 21st consecutive month. The prices of coal and petroleum products fell 13.3% due to a drop in oil prices while the prices of transport machinery declined 12.9% and those of electrical and electronics equipment fell 8.4%. “The recall of the Galaxy Note 7 and strike in Hyundai Motor Company negatively affected the export volume and value alike last month,” the central bank explained.
In the meantime, the import volume index increased 2.3% to 120.23 with mine product and transport equipment import volumes rising 10.8% and 8.2% and nonmetallic mineral product and metal product import volumes decreasing 16.1% and 13.4%. The net barter terms-of-trade index edged up by 0.2% to 101.74, showing the lowest rate of increase in 25 months. The income terms-of-trade index declined by 2.4% to this year’s low of 138.26.