The Magazine for Asian Investors
South Korea’s exports fell to a 20-month low in June, leading to an unprecedented trade deficit.
Exports increased by only 3.8% year-on-year in June. This increase makes June the 20th consecutive month of growth month. However, it will be the weakest month in the expansion series and is below the 21.3% increase in May.
In the first 20 days of the month, exports fell by 3.4% year-on-year. However, the weekday delivery rate increased by 11%.
The trade balance will show a deficit of $4.83 billion, the highest in South Korea’s history.
Asia’s fourth-largest economy posted a cumulative trade deficit of $7.83 billion from January to May. This was the first annual deficit since 2008, and it came amid skyrocketing commodity and energy prices.
The consumer price index increased by 5.9% in June than a year earlier. This increase accelerated from a reported annual rise of 5.4% in May and is the highest rate since July 2008.
Meanwhile, industrial production is expected to rise by a seasonally adjusted 0.5% month-on-month in May.