ID :
201125
Sun, 08/14/2011 - 05:23
Auther :
Shortlink :
https://oananews.org//node/201125
The shortlink copeid
Trade dependency ratio shoots up to pre-crisis level
SEOUL (Yonhap) - South Korea's dependence on foreign trade is approaching the highest level since it peaked amid the global financial crisis in 2008, the Bank of Korea said Sunday, showing the country is becoming more vulnerable to global financial woes.
The country's exports and imports accounted for 110.1 percent of its gross domestic product (GDP) in the first quarter, the highest since its trade to GDP ratio peaked at 114.6 percent in the fourth quarter of 2008.
The ratio dropped below 100 percent in the first quarter of 2009 and remained below the mark until the second quarter of 2010 when it resurged to 103 percent, according to the central bank.
A higher trade-to-GDP ratio means a country is more likely to be affected by changes in the global market than those with lower ratios.
In 2009, the country's trade-to-GDP ratio reached 95.9 percent while that of Japan reached only 24.8 percent, the United States 25.1 percent and China 49.1 percent.
Still, the Korea Institute of Finance said the latest global financial turmoil caused by the U.S. credit rating downgrade will have limited impact on South Korea.
"A slowdown in the U.S. economy will inevitably have an impact on our country's exports, but the impact will not be as severe as before," it said. "The impact will be limited if the economies of newly emerging countries continue to grow as newly emerging countries such as China account for nearly 70 percent of our exports."
The country's exports and imports accounted for 110.1 percent of its gross domestic product (GDP) in the first quarter, the highest since its trade to GDP ratio peaked at 114.6 percent in the fourth quarter of 2008.
The ratio dropped below 100 percent in the first quarter of 2009 and remained below the mark until the second quarter of 2010 when it resurged to 103 percent, according to the central bank.
A higher trade-to-GDP ratio means a country is more likely to be affected by changes in the global market than those with lower ratios.
In 2009, the country's trade-to-GDP ratio reached 95.9 percent while that of Japan reached only 24.8 percent, the United States 25.1 percent and China 49.1 percent.
Still, the Korea Institute of Finance said the latest global financial turmoil caused by the U.S. credit rating downgrade will have limited impact on South Korea.
"A slowdown in the U.S. economy will inevitably have an impact on our country's exports, but the impact will not be as severe as before," it said. "The impact will be limited if the economies of newly emerging countries continue to grow as newly emerging countries such as China account for nearly 70 percent of our exports."
