Trade Surplus Could Go as Low as 20 Billion Dollars

The Korea International Trade Association (KITA) revised its projections on Korea's 1999 trade surplus, now figuring it will amount to only 20 billion dollars, almost half of 1998's.
KITA now forecastes exports reaching 137 billion dollars, 3.6 percent more than that of last year, while imports are projected to steeply rise by 25.4 percent to 117 billion dollars.
This would make 1999's trade surplus 8 billion less than what KITA originally forecasted in late 1998, and 5 billion short of what the government anticipated.
KITA explained the revision was inevitable because domestic growth has been rising at an incredible clip, causing massive importing that together with rising international oil prices will lead to a reduced trade surplus despite the slight rise in exports.
Imports of electronic goods and mechanical equipment from Japan are especially increasing, bringing Korea an 8.5 billion-dollar trade deficit with its neighbor, it added.
KITA said that as consumption and consumer confidence rise, imports will definitely expand further in the second half of the year.
Bong Hwa-shik:trojans@joongang.co.kr