The thirteenth month of trade deficit…The deficit is narrowing

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(Photo = shutterstock)

The trade deficit continued for 13 months as a consequence of the slump in semiconductors. Nevertheless, since February, exports have increased for 2 consecutive months, and the deficit is on the decline.

In response to the March 2023 export and import trends announced by the Ministry of Trade, Industry and Energy (Minister Lee Chang-yang) on ​​the first, exports were $55.1 billion (down 13.6% year-on-year) and imports were $59.7 billion (down 6.4%), leading to a trade deficit of $4.62 billion. did.

Exports declined as a consequence of the bottom effect from the record-high export performance ($63.8 billion) in March of last yr amid the worldwide economic slowdown and deteriorating semiconductor industry conditions.

Nevertheless, exports recovered to the 55 billion dollar range in six months after September 2022 (57.2 billion dollars), and after hitting a low of 46.38 billion dollars in January, they increased for 2 consecutive months following February (50.11 billion dollars).

Monthly exports (Photo=Ministry of Industry)
Monthly exports (Photo=Ministry of Industry)

Exports of semiconductors, the biggest export item, decreased significantly (down 34.5% in comparison with the identical month last yr) as a consequence of the impact of product price drops, which greatly affected the decrease in exports in March. Alternatively, automobile exports increased by 64.2% in comparison with the identical month last yr.

Due to this fact, exports to the US and the Middle East, which were greatly affected by the surge in automobile exports, continued to extend, but exports to China and ASEAN, which have a high proportion of semiconductor exports, decreased.

Meanwhile, imports declined as imports of energy akin to crude oil and gas decreased by 11.1% in comparison with the identical month last yr.

Monthly trade balance (Photo = Ministry of Industry)
Monthly trade balance (Photo = Ministry of Industry)

The trade balance has recorded a deficit for 13 consecutive months since March last yr (a deficit of $0.2 billion). Nevertheless, after recording a large-scale deficit ($12.65 billion) in January, it’s showing a gradual improvement in February (lack of $5.27 billion) and March ($4.62 billion).

The Ministry of Trade, Industry and Energy said, “To enhance the trade deficit, we plan to advertise energy efficiency improvement together with a robust export drive.” We wish to strengthen support, akin to discovering promising items, to guide to

Reporter Lim Dae-jun ydj@aitimes.com

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