South Korea's exports plunged by a record one-third in January from a year earlier as demand dropped sharply in major overseas markets including China, the government said Monday.
The worse-than-expected figure highlighted the damage which the global economic downturn is doing to the export-dependent economy.
Exports last month were worth 21.7 billion dollars, a year-on-year drop of 32.8 per cent and the steepest decline since South Korea started announcing monthly tallies in 1980.
Imports decreased 32.1 per cent to 24.6 billion to leave a trade deficit of 2.97 billion dollars, according to the report from the Ministry of Knowledge Economy.
The ministry said exports of most products showed negative growth, with automobiles down 55 per cent, computers down 60 per cent and consumer electronic goods contracting by 65 per cent compared with the year before.
Only ships managed to increase exports, by 20 per cent.
Exports to the country's largest trade partner, China, fell 32 per cent and those to the second largest, the European Union, declined 47 per cent.
Shipments to the United States and Japan fell 21.5 per cent and 29 per cent, respectively.
The ministry said the Lunar New Year holiday and a halt in production by carmakers to reduce inventories worsened the figures.
Imports fell in January as demand for foreign consumer and capital goods fell more than 20 per cent. But unusually cold weather caused imports of gas and coal to rise 51 per cent and 62 per cent last month from a year earlier.
The ministry said exports by Asia's fourth largest economy may continue to lose ground in the near future, with global trade volume likely to contract 2.8 per cent in 2009 from a gain of more than four per cent last year.
Standard Chartered economist Chun Chong-Woo said exports could slump almost 40 per cent year-on-year in coming months.
"I expect exports to continue to fall around 30 per cent during the first half, and they could even decline by near-40 per cent," Chun told Dow Jones Newswires.
The worse-than-expected figure highlighted the damage which the global economic downturn is doing to the export-dependent economy.
Exports last month were worth 21.7 billion dollars, a year-on-year drop of 32.8 per cent and the steepest decline since South Korea started announcing monthly tallies in 1980.
Imports decreased 32.1 per cent to 24.6 billion to leave a trade deficit of 2.97 billion dollars, according to the report from the Ministry of Knowledge Economy.
The ministry said exports of most products showed negative growth, with automobiles down 55 per cent, computers down 60 per cent and consumer electronic goods contracting by 65 per cent compared with the year before.
Only ships managed to increase exports, by 20 per cent.
Exports to the country's largest trade partner, China, fell 32 per cent and those to the second largest, the European Union, declined 47 per cent.
Shipments to the United States and Japan fell 21.5 per cent and 29 per cent, respectively.
The ministry said the Lunar New Year holiday and a halt in production by carmakers to reduce inventories worsened the figures.
Imports fell in January as demand for foreign consumer and capital goods fell more than 20 per cent. But unusually cold weather caused imports of gas and coal to rise 51 per cent and 62 per cent last month from a year earlier.
The ministry said exports by Asia's fourth largest economy may continue to lose ground in the near future, with global trade volume likely to contract 2.8 per cent in 2009 from a gain of more than four per cent last year.
Standard Chartered economist Chun Chong-Woo said exports could slump almost 40 per cent year-on-year in coming months.
"I expect exports to continue to fall around 30 per cent during the first half, and they could even decline by near-40 per cent," Chun told Dow Jones Newswires.
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