S. Korea's current account surplus expected to fall to US$1.5 bln in Aug.

SEOUL, Sept. 7 (Yonhap) -- South Korea's current account surplus is expected to
fall to US$1.5 billion in August due to a sharp drop in trade volume, a
government report said Monday.

The latest economic assessment by the Ministry of Strategy and Finance said the
size of the current account, which topped $5.4 billion in June and $4.4 billion
in July, will be affected by the decrease in the trade surplus for the cited
month.
A country's current account reflects the balance of payments between exports and
imports of both goods and services.
In August the country's exports contracted 20.6 percent on-year to $29.08 billion
while imports fell 32.2 percent to $27.41 billion for a surplus of $1.67 billion.
The size of the trade surplus is the lowest tallied for this year.
The ministry, in addition, said that while overall market conditions are on the
mend following last year's global financial crisis, more time will be needed
before domestic demand picks up pace.
"Advanced industrialized countries that lead growth are showing signs of
recovery, but this has not translated into domestic economic gains," the report
said. It added that because there are lingering downside risks like potential
crude price hikes, it will be prudent for the government to maintain its
expansionary economic stance.
The ministry in charge of the country's overall economic policies, meanwhile,
said that Seoul will push forward timely spending of state funds in the third
quarter and urge public companies to increase investments to help stimulate
growth.
yonngong@yna.co.kr
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