Korea – CA surplus at 25% of GDP

This year's vertical rise in the current account surplus continued in June. It is now over $40bn, equivalent to 25% of GDP. That's huge in absolute terms, but also relative to history: before this year, the surplus as a ratio of GDP had never risen above 10%.

Paul Cavey

Aug 6, 2026 • 1 min read

Subscribers Only

East Asia Today

Credit growth continues to slow in China. The trend for M1 also remains down, warning of more deflationary pressure in 2027. In Q3, the current account surplus widened. In Korea, the TOT dipped in October, hinting at a peak in the spectacular rise in national incomes of recent months.

Subscribers Only

Korea – first signs of a peak

The terms of trade dipped in October, hinting at a peak in the spectacular rise in national incomes of recent months. However, when thinking about the implications, two caveats are needed: is the October decline monthly noise, and is the rise in national incomes just the first phase of the semi boom

Subscribers Only

East Asia Today

Rather than Asada's speech today, I spent most of the day thinking about Ueda's much more interesting remarks at the weekend. Import price inflation in Japan accelerated in October, CPI in Korea is on track to get back to 3% this month, and interest rates in China continue to fall.