South Korea’s exports have plunged the most among G-20 nations due to the ongoing US-China trade conflict, data compiled by the World Trade Organization showed Monday.
The country’s second-quarter exports dropped 8.6 percent on-year to $138.6 billion, marking the second-largest decline among G-20 members. Indonesia outranked Korea in terms of decline in exports with a 9.1 percent drop.
By nation, outbound shipments of those heavily reliant on either the US and China saw the steepest falls.
Korea’s outbound shipments have been lackluster for a while, having extended a losing streak for nine consecutive months as of August. Overall, the total exports came to $44.2 billion in August, down 13.6 percent on-year, with outbound shipments to China and the US plunging by 21.3 percent and 6.7 percent, respectively, in the same period.
China is Indonesia’s largest trading partner, due to its a huge demand for coal and steel. Its exports to China came to $14.5 billion in the first-half of 2018, accounting for 15.4 percent of the total at the time. Meanwhile, Indonesia’s imports from China amounted to $24.8 billion in the same period.
Russia which ranked No. 3 with an 8.3 percent decline, has been weighed down by a sharp decline in global oil prices and Western sanctions against Moscow over its annexation of the Crimea region from Ukraine in 2014.
In contrast, other G-20 members and parties directly engaged in the trade war -- China and the US -- saw a 3.1 percent and 1 percent drop, respectively, on-year.
Canada, Turkey, Mexico, Argentina and Australia were the only G-20 nations to see an increase in outbound shipments on-year.
Korea also moved down a notch in the export value ranking from the same period a year earlier. The export-reliant economy ranked No. 6 in the second quarter, with France -- which remained flat in its exports in the 12-month period -- taking its spot.
The WTO also recently released a bleak outlook for merchandise trade in the third quarter. The growth in global trade index for the third quarter was 95.7 in August, below the baseline value of 100.
mkjung@heraldcorp.com
