Current account surplus sharply narrows in April on higher oil prices

South Korea's current account surplus sharply narrowed in April as higher oil prices increased the country's import bill, the central bank said Tuesday.

The current account surplus reached $1.91 billion in April, narrowing from a surplus of $7.82 billion the previous month, according to the Bank of Korea (BOK). The current account is the broadest measure of cross-border trade.

Since the country logged a deficit of $3.33 billion in April last year, the largest in almost a decade, on faltering exports amid the pandemic, the current account has stayed in the black.

The goods balance logged a surplus of $4.56 billion in April, smaller than a surplus of $7.92 billion the previous month.

Exports, which account for half of the South Korean economy, jumped 41.1 percent on-year in April on the back of brisk demand for chips and cars.

Outbound shipment came to $51.1 billion in April, compared with $36.2 billion a year earlier.

Imports gained 33.9 percent to $50.8 billion, resulting in a trade surplus of $390 million. It marked the 12th consecutive month for the country to post a trade surplus.

The country's overseas shipments have been battered by the fallout of the COVID-19 pandemic. But the pace of the slump has eased since June last year as major economies slowly began resuming business activities and easing border lockdowns. (Yonhap)