Yonhap reported that South Korea's trade surplus widened in September 2012 from a year earlier as its imports shrank at a faster rate than exports.
According to the Ministry of Knowledge Economy, the country's trade surplus reached an estimated USD 3.15 billion in September 2012 as compared with a USD 1.6 billion surplus in September 2011. The figure also marks a growth from USD 2.04 billion in August 2012.
Exports dropped by 1.8% YoY to an estimated USD 45.66 billion with imports shrinking at a faster rate of 6.1% YoY to an estimated USD 42.51 billion.
The ministry said that "Though both exports and imports shrank from a year earlier, the rate of the drop for exports slowed significantly and the country's trade balance posted a surplus for the eighth consecutive month."
Exports in August 2012 had dropped by 6.2% YoY, following an 8.8% plunge in the previous month due to what the ministry called seasonal elements.
Exports in September 2012 dropped by a narrower margin with shipments of petroleum products, such as gasoline and diesel, surging 24% YoY year and those of wireless communications devices growing 10% YoY.
Outbound shipments of steel products, on the other hand, dropped by 9.1% YoY while exports of ships more than halved, slipping 50.6% YoY.
The ministry said the slower drop in exports in September 2012 as compared with previous months, may indicate signs of a possible recovery, noting the daily average amount of exports last month came to USD 2.08 billion as compared with the daily average for the January to August 2012 period at USD 1.98 billion.
The ministry partly attributed last month's drop in exports to a continued global economic slowdown caused by the euro zone debt crisis and also a slower than expected growth of major developing countries, such as China.
The country's exports to China only inched up 1.1% YoY with shipments to the United States dropping 0.4% YoY. Only shipments to the Middle East showed a steady, strong rise, growing 17.8% YoY in September 2012.
The ministry said the country's imports dropped partly because of its shrinking exports, which rely heavily on imported raw materials.
Inbound shipments of raw materials dropped by 9.1% YoY in September 2012 with imports of coal and natural gas plunging 34.3% YoY and 18.8% YoY, respectively. Petroleum imports surged 26.9% YoY, apparently on the 24% hike in the country's exports of petroleum products.
The ministry said the country's exports will likely struggle again in the fourth quarter but that gains enabled by the government's support in terms of increased financial guarantees and overseas marketing should offset at least some negative factors created by the global economic downturn.
It said that "Exports to the European Union countries will likely continue showing poor performances due to growing uncertainties and shrinking consumer sentiments caused by high unemployment rates there. Shipments to major newly emerging markets, such as Southeast Asia and the Middle East, are expected to show relatively steadier growths amid a continued expansion of the middle class there and resulting high demand."
Source - Yonhap News
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