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213116
Fri, 10/28/2011 - 04:46
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https://oananews.org//node/213116
The shortlink copeid
S. Korea's current account surplus jumps in Sept.
(ATTN: CORRECTS dateline; UPDATES with remarks by BOK official in paras 6-11,16)
By Kim Soo-yeon
SEOUL (Yonhap) -- South Korea's current account surplus jumped more than 10-fold in September from the previous month on brisk exports, the central bank said Friday, showing that overseas shipments are weathering global economic uncertainty.
The current account surplus reached US$3.1 billion in September, sharply up from a revised $292.6 million the previous month, according to the Bank of Korea (BOK). The current account is the broadest measure of cross-border trade and services.
The September reading rebounded from a seven-month low tallied the previous month, marking the largest surplus since $3.77 billion in July.
The current account remained in the black for the 19th straight month on exports, which account for about 50 percent of the South Korean economy.
The combined surplus amounted to $15.27 billion in the first nine months of this year, raising hopes that the yearly surplus is likely to surpass the central bank's earlier estimate of $15.5 billion.
The BOK said that the surplus for October may exceed the September figure, aided by solid overseas shipments.
"As exports are maintaining their momentum, the current account surplus is expected to be similar to the September number or larger," Kim Young-bae, director general of the BOK's economic statistics division, said at a press conference.
But Kim said that imports of capital goods grew at a slower pace last month as companies delayed capital spending amid heightened economic uncertainty, sparked by the eurozone debt crisis.
"The slowing growth in imports of capital goods could constrain the economic growth over the long haul," Kim noted.
Imports of capital goods grew 4.5 percent on-year to $12 billion last month, slowing from a 14.1 percent gain in August.
Analysts said exports have been largely firm, but the dimmer global economic outlook and the eurozone debt crisis are upping economic uncertainty, spawning concerns that Korea's exports could be dented down the road.
BOK Gov. Kim Choong-soo told a forum on Thursday that the current account surplus for next year is likely to miss the BOK's estimate of $17 billion due to worsening external conditions.
"The goods balance has kept its underlying surplus trend this year, but export growth is forecast to slow down on deteriorating external situations," Kim said.
South Korea's goods balance posted a surplus of $2.37 billion in September, up from a revised $371.5 million in August, the BOK said.
Exports rose 21.1 percent on-year to $47.5 billion and imports jumped 29.7 percent to $45.1 billion.
"The Japanese yen's strength might benefit Korea's exports of cars to some degree," added Kim. Exports of automobiles grew 38.6 percent on-year to $3.47 billion in September, according to the central bank.
The service account, which includes outlays by South Koreans on overseas trips, posted a surplus of $70.6 million last month, a turnaround from a shortfall of $577.9 million in August.
Meanwhile, the capital and financial account, covering cross-border investments, posted a net outflow of $4.68 billion in September, larger than a net outflow of a revised $1.73 billion in August, the central bank said. The September reading marked the largest net outflow in 11 months.
Last month, portfolio investments, including stock and bond investments, logged a net inflow of $1.77 billion, compared with a net outflow of $2.92 billion as foreign investors' selling spree of local stocks pared down.
But Europe's sovereign risks prompted banks, mostly local branches of foreign lenders, to repay their overseas loans worth a net $3.19 billion in September.
By Kim Soo-yeon
SEOUL (Yonhap) -- South Korea's current account surplus jumped more than 10-fold in September from the previous month on brisk exports, the central bank said Friday, showing that overseas shipments are weathering global economic uncertainty.
The current account surplus reached US$3.1 billion in September, sharply up from a revised $292.6 million the previous month, according to the Bank of Korea (BOK). The current account is the broadest measure of cross-border trade and services.
The September reading rebounded from a seven-month low tallied the previous month, marking the largest surplus since $3.77 billion in July.
The current account remained in the black for the 19th straight month on exports, which account for about 50 percent of the South Korean economy.
The combined surplus amounted to $15.27 billion in the first nine months of this year, raising hopes that the yearly surplus is likely to surpass the central bank's earlier estimate of $15.5 billion.
The BOK said that the surplus for October may exceed the September figure, aided by solid overseas shipments.
"As exports are maintaining their momentum, the current account surplus is expected to be similar to the September number or larger," Kim Young-bae, director general of the BOK's economic statistics division, said at a press conference.
But Kim said that imports of capital goods grew at a slower pace last month as companies delayed capital spending amid heightened economic uncertainty, sparked by the eurozone debt crisis.
"The slowing growth in imports of capital goods could constrain the economic growth over the long haul," Kim noted.
Imports of capital goods grew 4.5 percent on-year to $12 billion last month, slowing from a 14.1 percent gain in August.
Analysts said exports have been largely firm, but the dimmer global economic outlook and the eurozone debt crisis are upping economic uncertainty, spawning concerns that Korea's exports could be dented down the road.
BOK Gov. Kim Choong-soo told a forum on Thursday that the current account surplus for next year is likely to miss the BOK's estimate of $17 billion due to worsening external conditions.
"The goods balance has kept its underlying surplus trend this year, but export growth is forecast to slow down on deteriorating external situations," Kim said.
South Korea's goods balance posted a surplus of $2.37 billion in September, up from a revised $371.5 million in August, the BOK said.
Exports rose 21.1 percent on-year to $47.5 billion and imports jumped 29.7 percent to $45.1 billion.
"The Japanese yen's strength might benefit Korea's exports of cars to some degree," added Kim. Exports of automobiles grew 38.6 percent on-year to $3.47 billion in September, according to the central bank.
The service account, which includes outlays by South Koreans on overseas trips, posted a surplus of $70.6 million last month, a turnaround from a shortfall of $577.9 million in August.
Meanwhile, the capital and financial account, covering cross-border investments, posted a net outflow of $4.68 billion in September, larger than a net outflow of a revised $1.73 billion in August, the central bank said. The September reading marked the largest net outflow in 11 months.
Last month, portfolio investments, including stock and bond investments, logged a net inflow of $1.77 billion, compared with a net outflow of $2.92 billion as foreign investors' selling spree of local stocks pared down.
But Europe's sovereign risks prompted banks, mostly local branches of foreign lenders, to repay their overseas loans worth a net $3.19 billion in September.
