Affected By The Epidemic, Exports Of Korean And Japanese Goods Continued To Decline.

According to Yonhap reported that in May 21st, the data released by the South Korean government showed that, due to the persistent damage of global demand by the new crown pneumonia epidemic, the export volume of Korea fell 20.3% in the first 20 days of May.

South Korean customs data show that between May 1st and May 20th this year, South Korea's exports amounted to $20 billion 300 million, down 20.3% from the same period last year. Analysts expect the trade data to rebound as South Korea's trade partners relax the blockade.

Data show that Korea's exports to the United States and the European Union continued to plummet, down by 27.9% and 18.4% respectively. Korea's exports to Japan also fell by 22.4%. In the main export category, the export volume of wireless communication equipment dropped by 11.2%, the passenger car export volume decreased by 58.6%, and the oil products export volume decreased by 68.6%, but the export of semiconductors and ships increased.

In April this year, the export volume of Korea was about $36 billion 920 million, a decrease of 24.3% compared with the same period last year. In addition, the import volume of Korea in April dropped 15.9% to 37 billion 870 million US dollars, and the import and export trade suffered a deficit of 950 million US dollars, ending the trade surplus that lasted for more than 8 years.

According to foreign media reports, analysts at faxing bank said the Bank of Korea could lower its benchmark interest rate and the expected growth rate of GDP in 2020 next week's policy meeting. South Korea's central bank is expected to further reduce its policy interest rate by 25 basis points to 0.5% and reduce its GDP growth rate from 2.1% to 0.2%. In addition, the Bank of Korea may expand its bond buying program to support economic growth.

Coincidentally, due to the sudden drop in global demand caused by the epidemic, Japan's finance ministry's trade statistics released in May 21st showed that Japan's exports in April dropped 21.9% compared to the same period last year, the biggest decline since the 23.2% global financial crisis in 2009. So far, Japan's exports have declined for the 17 consecutive month.

Data showed that Japan's exports dropped to about 5 trillion and 200 billion yen (US $48 billion) in April, due to the sharp decline in exports of automobiles, machinery, chemicals and textiles. Among them, auto exports plunged 50.6%, the biggest decline since April 2011. In that month, Japan's exports to the United States dropped by 37.8%, the biggest drop since 2009, and the 28% decline in exports to the EU.

According to Kyodo news, Barclays securities economist said that the global recession will lead to "household savings rate and capital spending postponed", which may have caused a particularly serious blow to Japanese industries such as car manufacturing. Economists also pointed out that Japan's exports may rebound temporarily in May and June, but if exports continue to decline, Japan's trade deficit will expand to around 5 trillion yen in 2020.

The latest economic data show that in the first quarter of this year, Japan's gross domestic product (GDP) was calculated at an annual rate of minus 3.4%. After a 7.3% decline in the fourth quarter of last year, Japan has seen a negative GDP growth for the two consecutive quarter, the first time the Japanese economy has fallen into recession since 2015.