Trade Ministry Data Shows South Korean Exports Post Sharpest Decline In Six Years; Exports Down At 15.8 Percent On-Year In October

by Diana Tomale / Nov 25, 2015 07:37 PM EST

South Korean exports sank 15.8 percent on-year in October, according to South Korea trade ministry. (Photo by Chung Sung Jun / Getty Images)

South Korean exports dropped the most after over six years in October. According to a data released by the Ministry of Trade, Industry and Energy, exports from the country declined 15.8 percent on-year last month.

Reuters reported Nov.1 that a large decline on exports to China, United States and Europe has impacted the South Korean exports. Exports to South Korea's largest trading associate, China, fell 8 percent, while exports in the US and Europe dropped 11. 4 percent and 12.5 percent respectively.

Aside from that, the trade ministry also said that the slump in exports could be the result of low oil prices.

Data also revealed that South Korean exports have been declining for ten consecutive months. The latest figure reportedly is the sharpest fall since August 2009.

In addition, imports also fell 16.6 percent to $36.8 billion, according to the trade ministry.

Meanwhile, economists partly expected that South Korean exports would decline after the country posted a record high in exports in 2014.

"Judging by the smaller average daily export value, export momentum is still weak and it will affect fourth-quarter growth," HI Investment & Securities chief economist Park Sang Hyun said.

"Consumption is on the rise but without exports recovering it will be difficult for 2015 GDP to rise as much as the government wants."

Xinhua Net forecasted that the decline of South Korean exports slowed down in May to June. However, it jumped back to 14.9 percent in August and 8.3 percent in September.

Further reports have revealed that both exports and imports maintained a descending drift for the first ten months of the current year. Volume of shipments reportedly reduced 9.4 percent in October as compared to the same period last year.

Also, shipment of major export products declined in October. Exports of petrochemicals fell 31.6 percent, while oil products plunged 44.9 percent in the midst of low-priced crude oil and restoration of facilities.