Anchor: The World Trade Organization(WTO) says world trade volume fell five-point-four percent in the first half of the year from a year ago, while global exports fell five-point-one percent on year. South Korea’s exports fared worse as it contracted almost ten percent in the first six months, widening its pace of decline from five percent posted in 2015.
Our Kim In-kyung has more.

Report: Global trade volume fell to a six-year low in the first half of this year due to the global recession, an increase in digital trade and a decline in raw material prices.

South Korea’s first-half exports dropped to seventh place in the world as the pace of decline quickened from a year ago.

According to the WTO on Monday, trade volume by the world’s 71 major economies was 14-point-425 trillion dollars in the first six months of the year, down five-point-four percent on year, and marks the lowest in six years since 13-point-36 trillion dollars tallied in 2010.

First-half global trade volume peaked at 17-point-276 trillion dollars in 2014, but plunged eleven-point-seven percent last year and continued to slip this year. Two straight years of decline is rare and didn’t even occur during the 2008 global financial crisis.

Exports fell sharply along with trade with almost 75 percent of the 71 countries polled suffering drops in outbound shipments. A decrease in China’s trade volume curtailed exports in Asian nations, while a fall in international oil prices led to a setback in oil producing countries.

First-half global exports fell five-point-one percent, narrowing from an eleven percent drop a year ago. However, exports by Asian countries slipped six-point-five percent, widening from the six percent drop in the first half of last year.

China’s imports fell ten percent in the January-June period while exports, which had risen the previous year, dipped seven-point-seven percent.

South Korea’s exports in the first six months fell by nine-point-nine percent – almost double the five percent drop posted during the same period last year.

The slowdown in China has been a major blow for South Korean exports as it is the country’s biggest trade partner. Exports of ships, one of the top export items for South Korea, also declined as world trade contracted. In addition, industry sources say growing trade barriers in overseas markets amid the protracted global economic slowdown affected South Korea’s outbound shipments.
Kim In-kyung, KBS World Radio News.