ZCZC
BCN-42
S.KOREA-TRADE-OIL
S. Korea’s trade terms hit 44-month low on expensive crude oil
SEOUL, Aug. 24, 2018 (BSS/Xinhua) – South Korea’s terms of trade worsened
to the lowest in 44 months on expensive crude oil, central bank data showed
Friday.
The net terms-of-trade index for goods, which measures the amount of
imports capable of being purchased by the unit export proceed, stood at 92.94
in July, down 9.7 percent from a year ago, according to the Bank of Korea
(BOK).
The figure was the lowest since November 2014, posting the fastest yearly
fall in over six and a half years.
The trade terms kept worsening for eight straight months amid the
expensive crude oil. The global crude oil price in June, which was reflected
in the July trade terms, surged 58.4 percent compared with a year earlier.
Exports, which account for about half of the export-driven economy, showed
a rosy picture on robust demand for locally-made semiconductors.
The export volume index jumped 12.5 percent over the year to 156.86 in
July, marking the highest in 10 months. The export value index advanced 17.2
percent on higher export price for oil products and petrochemicals.
Imports, in terms of volume, inched up 0.6 percent in July from a year
earlier. The import value index jumped 16.1 percent on higher oil price.
BSS/XINHUA/HR/1300