Korea posts current account surplus for 26th straight month in AprilUpdated: 2014-05-29 22:26:42 (KST)
Korea has posted a current account surplus every month for more than two years now.
The central bank said Thursday that the nation posted a surplus of over 7.1 billion U.S. dollars last month.
That's a tad less than the 7.3 billion dollar surplus in March but up by more than 2-and-a-half billion dollars from the same month last year.
The Bank of Korea said the current account surplus was helped by strong shipments of automobiles, petroleum and steel products that led overall exports of products to rise 10 percent in April from the previous year to more than 56 billion dollars.
But imports dropped nearly one percent to 46 billion, raising concerns that the nation's continuous surplus trend is mostly down due to sluggish domestic demand.
"Last year, import numbers were very bad, and that means this year's imports would have a good base effect for a rise. But imports still dropped, indicating sluggish domestic demand."
The strong current account surplus might also burden local exporters in that it will add additional upward pressure to the strengthening Korean won.
The Bank of Korea has forecast the surplus for the year to reach 68 billion dollars.
This target looks attainable considering the accumulated surplus in the January to April period already stands at over 22 billion dollars.
"And the central bank expects the current account surplus to extend to a twenty-seventh straight month in May on strong exports.
Hwang Ji-hye, Arirang News."
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