S.Korea's trade terms rise to highest in over 5 years on cheap oil
Xinhua, October 22, 2015 Adjust font size:
Trade terms in South Korea rose to the highest in more than five years thanks to lower prices of crude oil, central bank data showed Thursday.
The net terms-of-trade index for goods, which gauges how many goods can be imported with a unit export, was 101.63 in September, up 1.7 percent from a month ago and surging 12.5 percent from a year earlier, according to the Bank of Korea (BOK).
The September figure was the highest since April 2010 when it recorded 102.94. It marked the upward trend for 13 months in a row.
Despite a 14.3 percent decline in export prices, import prices plunged 23.9 percent last month on the back of low crude oil prices, resulting in the improved trade terms.
The income terms-of-trade index, which measures how many goods can be imported with total export proceeds, came in at 141.78 in September, up 20.9 percent from a year earlier. It marked the highest in history.
In terms of volume, exports increased 7.4 percent in September on a yearly basis, with imports rising 1.2 percent. Enditem