November 5, 2022, South Korea, Pusan: Containers from the container freighter “Alula Express” are loaded at the Busan Newport International Terminal, one of the largest container ports in the world. Photo: Bernd von Jutrczenka/dpa (Photo by Bernd von Jutrczenka/picture alliance via Getty Images)
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South Korea posted a trade deficit of $47.5 billion for 2022, official data from the customs agency showed.
It was the worst trade deficit since the agency began collecting data in 1956, and far larger than the $20.6 billion trade deficit in 1996.
Exports in January fell $46.3 billion, or 16.6% — a more-than-expected fall of 11.3%. Imports fell $59 billion, or 2.6%, falling less than forecast from a 3.6% drop.
That resulted in a deficit of $12.7 billion for January, more than the $9.27 billion expected by economists polled by Portal.
The Korean won was trading at 1,232.24 against the US dollar after the report.
“There is an expectation that the global economy will not face as difficult a situation as expected thanks to the reopening of China and the unexpected growth of surrounding economies,” South Korea’s Economy and Finance Minister Choo Kyung-ho said at a meeting with officials on Wednesday .
Choo Kyung-ho, South Korea’s Deputy Prime Minister and Minister of Economy and Finance, speaks to his staff attending the G-20 Finance Ministers’ Meeting in Bali, Indonesia, July 16, 2022.
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“The widening trade deficit in January is largely due to seasonal factors, such as B. an import into energy exports for the winter, as well as a sudden drop in chip prices, leading to a deteriorated picture,” said Choo.
That comes as global smartphone shipments fell 18% to 296.9 million units in the final quarter of 2022 as demand fell, according to Canalys.
“Despite some stabilization in the third quarter, Asia-Pacific and Europe 2022 suffered their worst Q4 performances in history,” Canalys analyst Sanyam Chaurasia said, adding that Asia-Pacific deliveries in 2022 were up despite the resilience fell by 8% over the year.
On Tuesday, chipmaker Samsung Electronics reported its worst quarterly profit in eight years, while SK Hynix also posted a record loss for the period.