Last year’s current account balance set a record high in five years

The annual current account surplus in 2021 set a record high in five years, with 88.3 billion dollars. However, the figure was short of the Bank of Korea’s estimate, as import growth exceeded export growth because of a spike in commodity price, including oil.

According to international balance of payments released by the Bank of Korea on Thursday, the 2021 current account surplus increased by 16.3% (12.4 billion dollars) year-over-year (YoY), from 75.9 billion to 88.3 billion dollars, marking the third largest surplus in history, the first in 2015 (105.12 billion dollars) and the second in 2016 (97.92 billion dollars).

Yet the trade surplus was still short of the BOK’s initial estimate of 92 billion dollars, mainly because goods balance surplus, which recorded 76.21 billion dollars, decreased by 4.4 billion dollars from a year ago. Annual export volume in 2021 increased by 25.5% YoY (650.1 billion dollars), but import volume spiked by 31.2% (573.81 billion dollars), surpassing export growth, due to a sudden increase in commodity prices.

In December 2021, a current account surplus recorded 6.6 billion dollars, maintaining trade balance in surplus for 20 consecutive months. However, the surplus amount was more than halved from a year ago. The BOK expects current account surplus for 2022, yet continuing upward trend in commodity prices is highly likely to drag down the surplus amount for this year.

account balance set a record high in five years

The annual current account surplus in 2021 set a record high in five years, with 88.3 billion dollars. However, the figure was short of the Bank of Korea’s estimate, as import growth exceeded export growth because of a spike in commodity price, including oil.

According to international balance of payments released by the Bank of Korea on Thursday, the 2021 current account surplus increased by 16.3% (12.4 billion dollars) year-over-year (YoY), from 75.9 billion to 88.3 billion dollars, marking the third largest surplus in history, the first in 2015 (105.12 billion dollars) and the second in 2016 (97.92 billion dollars).

Yet the trade surplus was still short of the BOK’s initial estimate of 92 billion dollars, mainly because goods balance surplus, which recorded 76.21 billion dollars, decreased by 4.4 billion dollars from a year ago. Annual export volume in 2021 increased by 25.5% YoY (650.1 billion dollars), but import volume spiked by 31.2% (573.81 billion dollars), surpassing export growth, due to a sudden increase in commodity prices.

In December 2021, a current account surplus recorded 6.6 billion dollars, maintaining trade balance in surplus for 20 consecutive months. However, the surplus amount was more than halved from a year ago. The BOK expects current account surplus for 2022, yet continuing upward trend in commodity prices is highly likely to drag down the surplus amount for this year.


Min-Woo Park minwoo@donga.com