S. Korea posts first current account deficit in seven years in April
- 5 years ago
After posting a current account surplus for 83 straight months, South Korea recorded a current account deficit for the month of April.
Kim Hyesung reports.
South Korea's current account recorded a deficit of zero-point-66 billion U.S. dollars in April.
That's the first shortfall since April 2012 when exports to the EU fell sharply.
The figure is also down from the four-point-eight billion dollar surplus posted in March and one-point-four billion dollar surplus tallied in April 2018.
"The current account posted a deficit in April mainly due to higher dividends payouts, which are seasonal. The services account deficit and primary income deficit were larger than the goods account surplus."
The Bank of Korea said on Wednesday that dividends paid to stockholders overseas rose four billion dollars on-month to six-point-eight billion dollars as most companies pay yearly dividends in April.
The dividends income balance posted a deficit of five billion dollars, contributing to a primary income deficit.
The goods account surplus also shrank four billion dollars to 5-point-seven billion dollars in April.
Exports dropped six percent on-year on slowing global demand and falling chip prices but imports increased two percent on-year on rising global oil prices.
The services account deficit narrowed slightly on better travels account figures thanks to more travelers from China and Japan visiting the country and fewer Koreans travelling abroad.
Travel account income was at its highest since November 2014.
Kim Hyesung, Arirang News.
Kim Hyesung reports.
South Korea's current account recorded a deficit of zero-point-66 billion U.S. dollars in April.
That's the first shortfall since April 2012 when exports to the EU fell sharply.
The figure is also down from the four-point-eight billion dollar surplus posted in March and one-point-four billion dollar surplus tallied in April 2018.
"The current account posted a deficit in April mainly due to higher dividends payouts, which are seasonal. The services account deficit and primary income deficit were larger than the goods account surplus."
The Bank of Korea said on Wednesday that dividends paid to stockholders overseas rose four billion dollars on-month to six-point-eight billion dollars as most companies pay yearly dividends in April.
The dividends income balance posted a deficit of five billion dollars, contributing to a primary income deficit.
The goods account surplus also shrank four billion dollars to 5-point-seven billion dollars in April.
Exports dropped six percent on-year on slowing global demand and falling chip prices but imports increased two percent on-year on rising global oil prices.
The services account deficit narrowed slightly on better travels account figures thanks to more travelers from China and Japan visiting the country and fewer Koreans travelling abroad.
Travel account income was at its highest since November 2014.
Kim Hyesung, Arirang News.