Imports and exports dip in August

Imports and exports continued to their decline in August.

The Ministry of Commerce, Industry and Energy (MOCIE) announced that exports in August decreased by 19.4% to 11.92 billion dollars compared to the same period of last year, though they did show a little increase of 430 million dollars over July. The ministry expects that if the decline continues to slow as it did in August, the July/August period could signal a general turn around for exports.

Exports in August are generally less than in July due to the summer vacation. Semi-conductor exports in August 2000 were unusually high compared to July's exports, higher by 330 million dollars. However, August this year didn't deliver like last year as semi-conductors, computers and petroleum products plummeted. Amid the declining market flow, this amount made a little headway of 1.71 billion dollars over previous month as semi-conductor and computer prices began to stabilize. Telecommunications equipment and CRTs showed increased exports over July while steel and petroleum industry prices also cooled from this July. Exports to major markets started to level off in July.

In other competing Asian countries, exports deteriorated as well, especially in countries that place a strong emphasis on the IT (Intelligence Technology) industry and are highly dependent on U.S. exports. Taiwan and Singapore marked record declines in July; Taiwanese exports plunged 28.4% and exports from Singapore were also down by 27.6%.

Japan's trade surplus shrank to 29.9 billion dollars during the January to July period due to steeply diving exports, falling by 32.8 billion dollars. China also showed an export decrease of 0.6% in June and increase of 6.6% in July.

Imports in Korea during August declined by 15.1% to 11.42 billion dollars. Though capital imports were way down, consumer products continued to increase and raw materials also remained constant.

Capital goods decreases continued in the wake of sluggish exports and facilities investments shrinks.

Raw materials shrank due to international oil price declines and a general economic downturn. International oil prices in the second half this year, in connection with the global economy, will not terribly affect the trade surplus.

The trade surplus in August marked a 500 million dollar gain; the accumulated surplus for 2001 stands at 6.94 billion dollars as of August.

The trade surplus has been positive for 19 consecutive months since February 2000.