A trade deficit and crashing won offer a glimpse at what a U.S. revival in high-tech manufacturing means for South Korea's $1.8 trln economy, says mak_robyn
It hits a raw nerve just as demand for Korean goods is weakening with the global slowdown. Exports have underpinned the rapid development of its $1.8 trillion economy: Last year’s $645 billion of outbound shipments powered half of GDP growth, per The Korea International Trade Association.
Yet the country recorded a trade deficit in September for the sixth consecutive month. Semiconductors, a fifth of total exports, fell 5.7% year-on-year. The won has lost more than 20% of its value against the U.S. dollar this year. While falling oil and commodity prices should ensure an overall current account surplus this year, the longer-term risks are writ large.
A revival of American high-tech manufacturing will come at the expense of the trade-dependent Asian economy. Thanks to strong demand for South Korean-made electric cars, batteries and auto parts, shipments to the United States jumped 16% year-on-year in September. Those exports, which totaled some $96 billion last year, now look under threat. Big shifts today will have outsized effects on South Korea’s trade position down the road.
South Korea’s trade deficit was $3.77 billion in September, the sixth consecutive month in the red. The figure hit a record $9.47 billion the previous month.The South Korean won has weakened more than 20% against the U.S. dollar since the start of the year, making it one of the worst-performing major currencies in Asia.Editing by Antony Currie and Katrina Hamlin
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
South Korean President warns North over nuclear program | CNNNorth Korea will face 'a determined and overwhelming response' from South Korea and the United States if it attempts to use nuclear weapons, South Korea's President Yoon Suk Yeol said Saturday.
Read more »
Lamborghini Aventador And Huracan, McLaren 570S, Porsche 911 Among Victims Of South Korean Floods | CarscoopsLamborghini Aventador And Huracan, McLaren 570S, Porsche 911 Among Victims Of South Korean Floods | Carscoops carscoops
Read more »
South African president Ramaphosa to make state visit to UKSouth African President Cyril Ramaphosa will make a state visit to Britain, Buckingham Palace said on Monday, the first such visit since King Charles succeeded his late mother Queen Elizabeth last month.
Read more »
Plan for month-long lane restrictions on US 89 south of Bitter Springs
Read more »