Business

Tuesday March 3, 2009

S. Korea industrial output plunges


SEOUL: South Korea’s export-dominated economy suffered its sharpest-ever fall in industrial output in January, figures released yesterday showed, but a healthy trade surplus for February relieved some of the gloom.

Production in mining and manufacturing shrank 25.6% year-on-year compared with a revised 18.7% year-on-year decline in December, the National Statistical Office (NSO) said.

The January contraction is the biggest since such data began being compiled in January 1970, adding to fears the nation is slipping into recession faster than expected.

“The data reflects a continued economic downturn in January,” NSO official Yoon Myung-Jun told reporters, attributing the decline to reduced production of semiconductors, chip parts and cars.

Fewer working days in January due to the Lunar New Year holidays also contributed to the poor figures, he said.

Recent indicators suggest Asia’s fourth-largest economy is heading for its first recession in 11 years amid the global economic downturn.

Exports in January plunged by a record 33.8% year-on-year, leaving a trade shortfall of US3.35bil.

But the country posted a surplus of US$3.3bil in February, the largest monthly gain since July 2007.

Exports fell 17.1% year-on-year to US$25.8bil in February but imports nosedived 30.9% to US22.5bil.

The Ministry of Knowledge Economy attributed the turnaround to a sharp drop in imports and a surge in ship exports. Favourable exchange rates and more working days also helped the balance of trade swing back into the black.

Exports of steel, petrochemicals, cars, auto parts, consumer electronics, semiconductors and computers posted negative growth in February, but exports of ships — which are ordered years in advance — soared by 47.4%. — AFP


For Another perspective from The Korea Herald, a partner of Asia News Network, click here


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