This year’s trade deficit expected to be the worst

With the monthly export volume dropping by about 9 percent year-on-year, there is a bigger possibility for the monthly export volume to drop in 23 months. There is also a high possibility of the six-month consecutive trade deficit continuing, which will be the first in 25 years. The forecast says this year’s trade balance will be the worst in history.

According to Korea Customs Service on Wednesday, the export volume has reached 32.96 billion dollars since the first day of September, which is an 8.7 percent decline year-on-year. If the export decreases through the end of the month, it is a drop in 23 months since October 2020. “The export volume fell from the reduction in the number of days in operation, yet the daily average export volume increased,” the Customs Service explained.

The Korean government is preparing measures to save energy to reduce the trade deficit, which recently grew from an increased energy import. “Recently, the trade deficit is continuing with export growth slowing down as well as a surge in energy import,” said Choo Kyung-ho, Deputy Prime Minister and Minister of Economy and Finance. “As the future energy supply and price are highly uncertain measures for energy saving and efficiency in utilization to reduce the volatility in the trade balance.”


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