Exports increased by 15.2% in January, halving from 31.9% in November of last year, resulting in a trade deficit of $4.89 billion for the second month in a row.
In the economic growth system of the corona stock economy rebound, the increase in imports is greater than the chronic exports, and the trade deficit and the fiscal deficit overlap, creating a twin deficit.
According to the IMF data on the 31st of last month, the Ministry of Strategy and Finance self-reported that the country's gross domestic product (GDP), which grew by 4% last year, increased by 103.1% compared to 2019, "the fastest recovery rate compared to the seven advanced countries."
President Moon Jae-in attempted to expand the fund economy by directly investing 50 million won in the ‘Pilseung Korea Fund’ in August 2019.
According to the Ministry of Trade, Industry and Energy's statistics on imports and exports in January, exports of $55.32 billion increased 15.2% from the previous year, but imports rose 35.5% to $60.21 billion, resulting in the largest trade deficit in history.
In the early stage of the Corona virus, from a 34.5% decline in imports by 34.5% in April 2020 and a 15.8% drop in imports in the trade deficit system due to a decrease in exports for 6 consecutive months, exports increased for 15 consecutive months after November, 2020, when export support was concentrated. With an increase of 18.3% and imports of 37.4%, exports were pushed back by an increase in imports.
During the global economic downturn, the government's fiscal-led economic stimulus policy continued for three years to increase imports, solidifying the high-inflation and low-growth system, and showing the typical meeting of the trade deficit and the fiscal deficit.
The main focus of the Moon Jae-in government on imports of semiconductors and gas energy from nuclear power plants is working against the international system.
In the Trump Republican regime, President Moon switched energy imports to natural gas from the United States, and in the Biden Democratic regime, natural gas prices have risen due to a dispute with Russia over Ukraine's accession to NATO.
As for semiconductors closely related to Samsung, the international market forecasts, and the DRAM price fell from $4.1 to $3.71 at the end of last year, and then plummeted to $3.41 in January and is expected to decline until the middle of this year.
The decrease in semiconductor exports is clearly showing a slowdown, from US$12.37 billion in exports in November last year (up 40.1% year-on-year) to US$12,078.1 million in December (up 35.1%) and $10.87 billion in January (up 24.2%). it was done
The fiscal deficit from 2016 to 2018 was a deficit of 12 trillion won in 2019 (consolidated fiscal balance), a deficit of 71.2 trillion won in 2020, and a deficit of 22.4 trillion won in 2021 (November) to 90.3 trillion won in supplementary budget. It is expected to lose 100 billion won.
On the 21st of last month, the government voted for the 10th supplementary budget by the Moon administration, predicting the issuance of 11.3 trillion won deficit government bonds with a 14 trillion won supplementary budget for this year.
This year, with the main budget of 607.7 trillion won and the 14 trillion won supplementary budget, the total expenditure was 621.7 trillion won (an increase of 11.4% from the previous year) and the total revenue budget was 553.6 trillion won, resulting in a deficit of 68.1 trillion won.
This year, the national debt ratio rose from 50.0% of the main budget to 50.1%, a record high.