S.Korean exports fall 5.9 pct in 2016 with trade surplus at 89.8 bln USD

South Korean exports declined last year, marking the second yearly fall, but the economy posted a trade surplus thanks to faster reduction in imports than exports, a government report showed Sunday.

Exports, which account for about half of the economy, reached 495.5 billion U.S. dollars in 2016, down 5.9 percent from the previous year, according to the Ministry of Trade, Industry and Energy.

The overseas shipments dipped 8.0 percent in 2015 after growing 2.4 percent in the previous year.

The export fall for two years in a row was the second since related data began to be compiled in 1956. The first case was the exports in 1957 and 1958 that retreated 9.7 percent and 25.9 percent respectively.

Imports sank at a faster pace of 7.1 percent than exports to reach 405.7 billion dollars in 2016, leading to a trade surplus of 89.8 billion dollars. The 2016 surplus was down from 90.3 billion dollars tallied in 2015.

The ministry expected the country's exports to rise 2.9 percent in 2017 on the back of improved global recovery and stronger demand for major export items such as display panels, computers and oil products.

Imports are forecast to expand 7.2 percent this year on expected rise in crude oil prices, with its 2017 forecast for trade surplus set at 75 billion dollars. Enditem