ID :
204067
Mon, 08/29/2011 - 05:46
Auther :
Shortlink :
https://oananews.org//node/204067
The shortlink copeid
(2nd LD) S. Korea's current account surplus hits 9-month high in July
(2nd LD) S. Korea's current account surplus hits 9-month high in July
(ATTN: RECASTS first 2 paras; UPDATES with remarks by BOK official, more info throughout)
By Kim Soo-yeon
SEOUL, Aug. 29 (Yonhap) -- South Korea's current account surplus hit a nine-month high in July on record exports, the central bank said Monday, showing that exports withstood global economic uncertainty and a strong currency.
But the Bank of Korea (BOK) said the surplus is likely to narrow in August on eased exports, spawning concerns that the country's overseas shipments may begin to be affected by signs of the global recovery slowing down.
The current account surplus reached US$4.94 billion in July, more than doubling from a revised $2.03 billion the previous month, according to the BOK. The current account is the broadest measure of cross-border trade.
The July surplus was the largest since a $5.11 billion surplus tallied in October last year. The current account remained in the black for the 17th straight month in June on exports, which account for about 50 percent of the South Korean economy.
The cumulative surplus amounted to $13 billion in the first seven months of the year and the central bank revised up its 2011 forecast of the surplus to $15.5 billion.
The BOK said the current account surplus is expected to be reduced for August mainly because exports tend to slow down on a seasonal factor.
"The surplus is likely to decrease for August as companies tend to increase exports in July in advance of the summer vacation season," Yang Jae-ryong, director of the BOK's monetary and financial statistics division, said at a press conference.
"But even if the country logs a smaller surplus, it would not be negative enough to revise the BOK's full-year current account estimate."
The South Korean economy maintained the growth momentum, powered by exports, even as the local currency has gained more than 5 percent to the dollar since January and global economic uncertainty lingers.
But the first-ever U.S. credit downgrade and eurozone sovereign strains are raising fears about the global economic recession. Analysts said Korea's exports would inevitably be hurt by deteriorating external economic conditions.
Finance Minister Bahk Jae-wan said earlier in the day that the government could revise down its growth outlook for this year, which currently stands at 4.5 percent, due to lingering uncertainty at home and abroad.
He said exports will likely pick up in September though they may show modest performance for August.
"Still-robust exports propped up the current account surplus last month, but the surplus is likely to be narrowed in August," said Park Sang-hyun, a chief economist at Hi Investment & Securities Co.
"I think that impacts of the global economic slowdown will likely be reflected in exports starting in the fourth quarter, but the underlying trend of the current account surplus will remain intact this year."
South Korea's goods balance posted a surplus of a record $5.89 billion in July, up from a revised $2.7 billion in June.
Exports grew 20.9 percent on-year to an all-time high of $49.7 billion in July and imports expanded 22.2 percent to $43.8 billion.
The service account, which includes outlays by South Koreans on overseas trips, posted a deficit of $690.9 million last month, compared with a shortfall of $632.7 million in June due to a rise in spending on overseas travel.
The primary income account, which tracks wages for foreign workers and dividend payments overseas, logged a surplus of $72.3 million in July, compared with $239.8 million in June.
Meanwhile, the capital and financial account, covering cross-border investments, posted a net outflow of $3.2 billion in July, similar to a net outflow of $3.22 billion in June, according to the BOK.
Last month, banks paid off their overseas borrowing to meet the tighter rules on banks' currency derivatives positions, posting a net outflow of $4.12 billion, the BOK said. It compared with a net inflow of $1.55 billion in June.
South Korea lowered the ceiling of foreign exchange derivatives positions held by local and foreign banks by 20 percent in a bid to curb growing short-term overseas debt. The move took effect on July 1.
sooyeon@yna.co.kr
(END)
(ATTN: RECASTS first 2 paras; UPDATES with remarks by BOK official, more info throughout)
By Kim Soo-yeon
SEOUL, Aug. 29 (Yonhap) -- South Korea's current account surplus hit a nine-month high in July on record exports, the central bank said Monday, showing that exports withstood global economic uncertainty and a strong currency.
But the Bank of Korea (BOK) said the surplus is likely to narrow in August on eased exports, spawning concerns that the country's overseas shipments may begin to be affected by signs of the global recovery slowing down.
The current account surplus reached US$4.94 billion in July, more than doubling from a revised $2.03 billion the previous month, according to the BOK. The current account is the broadest measure of cross-border trade.
The July surplus was the largest since a $5.11 billion surplus tallied in October last year. The current account remained in the black for the 17th straight month in June on exports, which account for about 50 percent of the South Korean economy.
The cumulative surplus amounted to $13 billion in the first seven months of the year and the central bank revised up its 2011 forecast of the surplus to $15.5 billion.
The BOK said the current account surplus is expected to be reduced for August mainly because exports tend to slow down on a seasonal factor.
"The surplus is likely to decrease for August as companies tend to increase exports in July in advance of the summer vacation season," Yang Jae-ryong, director of the BOK's monetary and financial statistics division, said at a press conference.
"But even if the country logs a smaller surplus, it would not be negative enough to revise the BOK's full-year current account estimate."
The South Korean economy maintained the growth momentum, powered by exports, even as the local currency has gained more than 5 percent to the dollar since January and global economic uncertainty lingers.
But the first-ever U.S. credit downgrade and eurozone sovereign strains are raising fears about the global economic recession. Analysts said Korea's exports would inevitably be hurt by deteriorating external economic conditions.
Finance Minister Bahk Jae-wan said earlier in the day that the government could revise down its growth outlook for this year, which currently stands at 4.5 percent, due to lingering uncertainty at home and abroad.
He said exports will likely pick up in September though they may show modest performance for August.
"Still-robust exports propped up the current account surplus last month, but the surplus is likely to be narrowed in August," said Park Sang-hyun, a chief economist at Hi Investment & Securities Co.
"I think that impacts of the global economic slowdown will likely be reflected in exports starting in the fourth quarter, but the underlying trend of the current account surplus will remain intact this year."
South Korea's goods balance posted a surplus of a record $5.89 billion in July, up from a revised $2.7 billion in June.
Exports grew 20.9 percent on-year to an all-time high of $49.7 billion in July and imports expanded 22.2 percent to $43.8 billion.
The service account, which includes outlays by South Koreans on overseas trips, posted a deficit of $690.9 million last month, compared with a shortfall of $632.7 million in June due to a rise in spending on overseas travel.
The primary income account, which tracks wages for foreign workers and dividend payments overseas, logged a surplus of $72.3 million in July, compared with $239.8 million in June.
Meanwhile, the capital and financial account, covering cross-border investments, posted a net outflow of $3.2 billion in July, similar to a net outflow of $3.22 billion in June, according to the BOK.
Last month, banks paid off their overseas borrowing to meet the tighter rules on banks' currency derivatives positions, posting a net outflow of $4.12 billion, the BOK said. It compared with a net inflow of $1.55 billion in June.
South Korea lowered the ceiling of foreign exchange derivatives positions held by local and foreign banks by 20 percent in a bid to curb growing short-term overseas debt. The move took effect on July 1.
sooyeon@yna.co.kr
(END)
