Gloomy exports cast cloud over South Korea economy

By Park Sae-jin Posted : February 22, 2016, 12:31 Updated : February 22, 2016, 12:31

Containers stacked in Incheon port [Aju News DB]


South Korean exports have declined sharply for the first 20 days of this month from a year earlier, the latest warning signal about the economy losing momentum over a slowing Chinese economy and low oil prices, data showed Monday.

In the first 20 days, exports plunged 17.3 percent to 22.16 billion US dollars from the corresponding period last year despite longer working days , according to data from the customs office.

Imports also fell 17.4 percent to $20.19 billion during the comparable period.

The country’s exports have dropped every single month since the start of 2015, plunging 18.5 percent on-year in January alone, the fastest rate of decline since August 2009.

A drop in February will mark the 14th consecutive month of on-year drops, the longest streak of negative growth since the country began compiling such data in 1970.

South Korea is the world's sixth-largest exporter. The recent data gave a reading of the health of the Chinese economy because around a quarter of South Korea’s exports are sent to China.

For all of 2015, South Korean shipments overseas contracted eight percent  -- the steepest fall in six years and the first yearly contraction in three years.

BY Alex Lee
 
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