South Korea registers its first current account deficit in seven years in April

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South Korea recorded its first current account deficit in seven years.
The April figures are the result of an increase in dividends and weak exports.
Kim Hyesung helps us look beyond the numbers.
The current account of South Korea recorded a deficit of 66 billion USD in April.
This is the first deficit since April 2012, when exports to the EU fell sharply.
This figure is also down from the four trillion dollar surplus posted in March and to a four billion point surplus in April 2018.
"The current account experienced a deficit in April, mainly due to the rise in seasonal dividend payments.The deficit in the services account and the primary income deficit were larger than the surplus in the US account. goods."
The Bank of Korea announced on Wednesday that dividends paid to foreign shareholders rose by $ 4 billion a month to six points to $ 8 billion, with most companies paying annual dividends in April.
The dividend income balance posted a deficit of $ 5 billion, contributing to a deficit in primary incomes.
The surplus of the goods account also fell by 4 billion dollars to reach 5 points 7 billion dollars in April.
Exports fell 6 percent year-over-year due to slower global demand and lower chip prices, but imports rose 2 percent year-over-year due to higher global oil prices.
The service account deficit decreased slightly due to improved travel figures, thanks to the increase in the number of travelers from China and Japan and the reduction in the number of Koreans traveling to Japan. # 39; abroad.
"A current account deficit means that Korea has paid more money to foreign countries than it has gained through trade in goods, services and capital. negative growth in the first quarter, it recorded a current account deficit, sovereign ratings, … and this could further reduce the value of the Korean won. "
"The Bank of Korea has pointed out that the current account deficit in April is seasonal, mainly because of the huge dividend distributions and the expected surplus in May, but exports continue to slow, a current account surplus less important should next two months.
Kim Hyesung, Arirang News. "

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