The World Trade in the First Half of the Year Declines the Most Since the Financial Crisis

It’s been reported that the world trade revenue in the first half of this year (based on major 67 countries) has declined the most since the financial crisis. According to the ‘World Trade Trend, First Half of 2015’ report presented by KITA’s Institute for International Trade (Director Geuk-Su Kim, on 31st, the trade revenue during the first six months of this year has decreased by 11.9% compared to the same period in the previous year and the decline is by far the most since 2009. The trade volume in the first half of the year (January~May) maintained similar growth rate (2~3%) to the last three years (2012~2014), however the decrease in unit price (-14.1%) has caused overall poor trade performance.

Most countries performed poorly on international trade. China was the only country which showed export increase in volume (1.0%) among the top 10 trade partners, yet its substantial decline in import (-15.5%) rendered the country to remain second after the US in terms of trade volume. US recorded 5.2% of decrease in export but was able to maintain fairly decent performance overall compared to other major countries like China, Germany, and Japan as its decline in import remains just at 3.1%.

Despite its decline (-5.2%) in export, Korea performed comparatively well in export and ranked 6th in the world for the first time. On the other hand, import and trade ranked 9th respectively, maintaining the same position as the previous year.

 The feasibility of accomplishing $1 billion in international trade seems rather negative as the trade performance in the first half of the year was poor. Both import and export will be negatively affected by various foreign conditions such as low oil price and unstable world economy due to China.

Hye-Jung Shim, a researcher at the Institute for International Trade, explained, “Although there still is a possibility that Korea may accomplish $1 billion in trade revenue this year, it is a difficult goal to reach as international oil price increase seems uncertain, the Chinese economy is unstable, the US interest rate is to be increased, and more.” | Blog Magazine of korean-machinery, brands and Goods

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