The trade surplus in South Korea rose to $6 Billion during April 2009 due to higher exports, rising demand in China and easing recession in the developed world.
According to a government report, the South Korean trade surplus swelled to $6 Billion in April 2009 due to favorable exchange rates and a drastic decline in imports, as reported by MCOT.NET.
The Ministry of Knowledge Economy said that the exports from South Korea in April 2009 slumped 19% year-on-year to $30.6 Billion, while the imports plummeted 35.6% to $24.6 Billion. The monthly surplus crossed the previous record of slightly below $4.3 Billion registered in March, and was higher than $3.8 Billion recorded in April 1998, when South Korea was facing the challenges of the Asian financial crisis and was holding back on expenditure.
The South Korean exports in the initial four months of this year soared to $105.4 Billion, while imports totaled at $95.8 Billion, translating into a trade surplus of $9.5 Billion. The Ministry revealed that ship sales rose 39.9% annually, with 2.3% increase in the export of liquid crystal display.
The decline in the South Korean exports during April 2009 was less than expectations and per day export earnings flared up for the third consecutive month. These positive signs indicate that South Korea is probably recovering from the global economic slump.
The stimulus package of $37 Billion given by the government seems to have changed the scenario noticed late last year. The downfall in exports from the Asian region seems to be abating due to strong demand from China.
Although there were expectations of decline in April, the growth in exports value per working day was quite impressive. Besides, South Korea is the first leading export economy in the world that reports trade figures each month, thus providing the initial clues on the global demand.
According to a Research Analyst at RNCOS, “Higher trade surplus in South Korea is primarily due to the companies’ stand of cutting back on imports that include purchasing of facility upgrade and that of parts and components. Rising demand from China and the signs of easing recession in the developed world are supporting the prospects of South Korea as well as other exporting economies.”
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