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South Korea posts the worst trade deficit in its history

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Busan, South Korea, November 5, 2022: Containers are loaded from the container freighter Alula Express at Busan Newport International Terminal, one of the world’s largest container ports. Photo: Bernd von Jutrczenka/dpa (Photo by Bernd von Jutrczenka/picture Alliance via Getty Images)

Picture Alliance | Picture Alliance | Getty Images

South Korea will record a $47.5 billion trade deficit in 2022, according to official customs data.

This is the worst trade deficit since the agency began compiling data in 1956 and far surpasses the $20.6 billion trade deficit in 1996.

Jan exports fell by $46.3bn or 16.6%, beating expectations of a 11.3% decline. Imports fell by $59 billion, or 2.6%, below the expected 3.6% decline.

As a result, the January deficit was $12.7 billion, above the $9.27 billion forecast of economists polled by Reuters.

of South Korean Won Following the report, it traded at 1,232.24 against the US dollar.

South Korea’s Economy and Finance Minister Choo Kyung-ho said, “There are expectations that the global economy will not face as difficult a situation as expected due to the resumption of economic activity in China and the unexpected growth of neighboring economies.” Wednesday.

South Korea’s Deputy Prime Minister and Economy and Finance Minister Choo Kyung-ho speaks with staff at the G-20 Finance Ministers’ Meeting in Bali, Indonesia on July 16, 2022.

Sonny Tamberaka | AFP | Getty Images

“The widening trade deficit seen in January is widely seen as being due to seasonal factors such as imports of energy exports in the winter and a sharp drop in chip prices, exacerbating the situation.

This is because global smartphone shipments fell 18% to 296.9 million units in the fourth quarter of 2022, resulting in lower demand. Canalis.

“Despite some stabilization in the third quarter, Asia-Pacific and Europe posted their worst-ever fourth-quarter performance in 2022,” said Canalys analyst Sanyam Chaurasia. It added that Pacific shipments fell by 8% in 2022 despite being resilient throughout the year.

Tuesday, chipmaker Samsung Electronics reported its worst quarterly profit in eight years, SK hynix It also posted record losses during the period.

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