Export Prices Fall More than Import Prices
The Bank of Korea announced on March 25 that South Korea’s net barter terms of trade index fell 0.7 percent month on month and 5.8 percent year on year last month, continuing to fall for the 27th consecutive month.
This is because export prices fell more than import prices. Last month, the export volume index rose 11.4 percent from a year ago to 104.74 after a decline in the previous month. For example, the index related to computers, semiconductors, electronics and optical instruments jumped 30.5 percent while that related to transport equipment such as automobiles fell 5 percent. The export value index of the semiconductor sector showed a year-on-year increase of 17.8 percent.
When it comes to the import volume index, which rose 1.5 percent year on year to 98.04 last month, that of computers, electronics and optical instruments increased 18.7 percent and that of coal and petroleum products jumped 35.5 percent from a year earlier. The import value index, 102.46, rose 0.1 percent from a year ago, showing a rise for the first time in 10 months. The index of computers, electronics and optical instruments increased 11.6 percent whereas the index of mining products fell 9.8 percent.
Last month, the income terms of trade index rose 4.9 percent from a year ago with the export volume index rising 11.4 percent and the net barter terms of trade index falling 5.8 percent as mentioned above.