South Korea's current account surplus decreased to $28.29 billion in April from $37.93 billion in March. This was primarily due to the primary income account shifting to a deficit, although the goods surplus increased significantly on the back of strong export growth.
The narrowing current account surplus indicates a potential moderation in the country's external balance, though strong export growth in goods remains a positive sign. Volatility in the primary income account and financial flows could pose risks to future surplus levels.
South Korea's current account surplus narrowed to $28.29 billion in April, down from $37.93 billion in March and $4.51 billion in April of the previous year, according to the Bank of Korea. The decrease was largely driven by the primary income account shifting to a deficit of $2.53 billion from a surplus of $3.59 billion in March. However, the goods surplus saw a significant increase, jumping to $33.88 billion from $9.78 billion a year earlier, fueled by a 54.5% year-over-year rise in exports to $90.59 billion, while imports grew 16.1% to $56.70 billion. The services deficit narrowed to $2.42 billion. On a seasonally adjusted basis, the current account surplus fell 6.3% month-over-month to $33.39 billion, but the 12-month rolling surplus reached a record high of $201.73 billion. The financial account recorded net outflows of $25.46 billion.