SEOUL, Jun. 2 (Korea Bizwire) — Korean exports in dollar value decreased 10.9 percent in May from the same period last year, due to the weakening Yen, slowing economies in the U.S. and China, a loss of competitiveness for Korean companies, and low oil prices.
Korean exports have decreased for five months in a row, and their rate of decline is the highest in 6 years since August 2009, right after the global recession.
While the first quarter GDP growth rate in the U.S. decreased, China’s GDP growth rate in the first quarter was 7.0 percent, which was a new 6-year low. China’s industrial output, consumption and investment do not appear to be trending positively in the second quarter either.
Korea’s exports to the U.S.A decreased 7.1 percent in May, following a similar fall in April. Exports to China also decreased 3.3 percent, marking the fourth consecutive month of declines.
China’s transition from export-centered growth to domestic demand-centered growth also affected Korea’s dropping exports.
As the share of processing trades among China’s overall trades decreased to 25.2 percent in the first quarter this year from 41.1 percent in the same period of 2000, Korea’s low material exports to China also decreased 15.2 percent in the first quarter compared to the same period last year.
By John Choi (email@example.com)