Seoul, – South Korea’s reliance on trade fell to an all-time low in a decade last year, data showed Tuesday.
The proportion of South Korea’s trade to its gross national income (GNI) – a gauge of a country’s trade dependence – stood at 80.8% at the end of last year, down 5.9% points from 2015, according to data compiled by the Bank of Korea, cited by state news agency (Yonhap).
The ratio jumped to 104.5% in 2008 in the wake of the global financial crisis and surged to 113.5% in 2011 before falling to 98.6% in 2014 and 86.7% in the following year.
The latest decline is attributed to a fall in global oil prices. South Korea imports crude oil that is refined in the country and exported as petrochemical products.
A separate data compiled by the Organization for Economic Cooperation and Development, a group of 35 mostly rich nations, showed that South Korea’s reliance on trade is much higher than that of the United States and other advanced countries.
The proportion of South Korea’s trade to its gross domestic product came to 84.8% in 2015, compared with 28% in the US, 56.8% in Britain and 61.4% in France.
The BOK said external factors such as a US rate hike and Britain’s negotiations to formally leave the European Union could have an impact on the South Korean economy. Exports account for about half of the South Korean economy. (QNA)
Source: Qatar News Agency