ID :
43616
Sun, 02/01/2009 - 20:05
Auther :
Shortlink :
https://www.oananews.org//node/43616
The shortlink copeid
S. Korean exports may face uphill climb in 2009
SEOUL, Feb. 1 (Yonhap) -- South Korean exports may face an uphill climb in 2009
as the global economic slump bites into consumer demand and business investment,
sources said Sunday.
Government and industry sources said worldwide trade is cooling off at a much
faster rate than previously anticipated, which may compel a reassessment of
export targets set for this year.
The Ministry of Knowledge Economy said early last month that it is aiming to push
up exports by 1 percent to US$427 billion. It also said that by expanding export
insurance coverage by 40 trillion won (US$28.9 billion) and implementing other
support measures, the outbound shipment total could be raised to $450 billion.
They pointed out that the International Monetary Fund's (IMF) World Economic
Outlook assessments released last week predict global economic growth will reach
only 0.5 percent, down sharply from the original estimate of 2.2 percent.
It added that trade may contract 2.8 percent annually across the board, with
demand for goods falling in both industrialized and developing countries. A
similar prediction was made in November by the World Bank, which said trade may
decrease 2.1 percent in 2009 compared to the previous year.
A decrease in exports to developing countries, which bought 60-70 percent of
locally made goods in recent years, could deal a serious blow to the economy.
"The situation in terms of exports is worse than the 1997-98 Asian financial
crisis, since there is just no demand," said a policymaker at the economic
ministry.
He pointed out that Seoul has effectively "given up" trying to reach export
targets at least in the first quarter, although it predicts the country could
pull off a trade surplus because imports will fall more sharply than exports.
In 2008, the country posted a trade deficit of US$13.3 billion from a surplus of
$14.6 billion the previous year. For this year, Seoul expects a surplus exceeding
$10 billion.
Related to the government's export target, industry experts claimed that gains
are unlikely this year, emphasizing it may be hard to meet last year's numbers at
the present rate.
Official export figures for January have not been released, although preliminary
estimates indicate numbers may have fallen by a record 35 percent on-year, with
the trade deficit reaching $3.8-4.0 billion, roughly equal to the shortfall
reported in the first month of 2008.
The Institute for International Trade (IIT) under the Korea International Trade
Association said it conducted a poll on 802 companies that showed 60.5 percent of
respondents predicting a decline in exports this year from 2008.
The companies, in addition, predict a drop in volume and individual export prices
as foreign buyers may opt for cheaper products.
The pessimism is bad news for the country that relies heavily on exports to fuel
its economy. Close to 40 percent of the country's GDP is generated by exports.
yonngong@yna.co.kr
(END)
as the global economic slump bites into consumer demand and business investment,
sources said Sunday.
Government and industry sources said worldwide trade is cooling off at a much
faster rate than previously anticipated, which may compel a reassessment of
export targets set for this year.
The Ministry of Knowledge Economy said early last month that it is aiming to push
up exports by 1 percent to US$427 billion. It also said that by expanding export
insurance coverage by 40 trillion won (US$28.9 billion) and implementing other
support measures, the outbound shipment total could be raised to $450 billion.
They pointed out that the International Monetary Fund's (IMF) World Economic
Outlook assessments released last week predict global economic growth will reach
only 0.5 percent, down sharply from the original estimate of 2.2 percent.
It added that trade may contract 2.8 percent annually across the board, with
demand for goods falling in both industrialized and developing countries. A
similar prediction was made in November by the World Bank, which said trade may
decrease 2.1 percent in 2009 compared to the previous year.
A decrease in exports to developing countries, which bought 60-70 percent of
locally made goods in recent years, could deal a serious blow to the economy.
"The situation in terms of exports is worse than the 1997-98 Asian financial
crisis, since there is just no demand," said a policymaker at the economic
ministry.
He pointed out that Seoul has effectively "given up" trying to reach export
targets at least in the first quarter, although it predicts the country could
pull off a trade surplus because imports will fall more sharply than exports.
In 2008, the country posted a trade deficit of US$13.3 billion from a surplus of
$14.6 billion the previous year. For this year, Seoul expects a surplus exceeding
$10 billion.
Related to the government's export target, industry experts claimed that gains
are unlikely this year, emphasizing it may be hard to meet last year's numbers at
the present rate.
Official export figures for January have not been released, although preliminary
estimates indicate numbers may have fallen by a record 35 percent on-year, with
the trade deficit reaching $3.8-4.0 billion, roughly equal to the shortfall
reported in the first month of 2008.
The Institute for International Trade (IIT) under the Korea International Trade
Association said it conducted a poll on 802 companies that showed 60.5 percent of
respondents predicting a decline in exports this year from 2008.
The companies, in addition, predict a drop in volume and individual export prices
as foreign buyers may opt for cheaper products.
The pessimism is bad news for the country that relies heavily on exports to fuel
its economy. Close to 40 percent of the country's GDP is generated by exports.
yonngong@yna.co.kr
(END)
