Current Account Surplus Shrinks in July

South Korea recorded a current account surplus for the sixth straight month in July but it narrowed due to a declining trade surplus and more spending on overseas travel, AFP reported quoting the central bank Friday.

The surplus reached $4.4 billion last month compared with $5.43 billion in June, the Bank of Korea said in a report. The current account, the broadest measure of trade with the world, has remained in surplus since February as imports have fallen faster than exports amid the global downturn.

The surplus is likely to prop up the won, which has gained about 26 percent against the dollar since early March.

The goods balance recorded a surplus of $6.17 billion in July, compared with a $6.61 billion surplus the previous month. Exports fell 20.5 percent year-on-year to $33.6 billion last month but imports declined 34.8 percent to $27.4 billion.

The shortfall in the service account, which includes outlays by South Koreans on overseas trips, widened to $1.89 billion last month compared with $1.45 billion a month earlier.

The income account, which tracks wages for foreign workers and dividend payments overseas, achieved a surplus of $481.6 million dollars compared with $678 million in June.

The capital account, which tracks cross-border investments, recorded a net inflow of $2.38 billion in July compared with a net outflow of $290.5 million a month earlier.