SEOUL, Jan. 1 (Xinhua) -- South Korean exports declined last year, marking the second yearly fall, but the economy posted a trade surplus thanks to faster reduction in imports than exports, a government report showed Sunday.
Exports, which account for about half of the economy, reached 495.5 billion U.S. dollars in 2016, down 5.9 percent from the previous year, according to the Ministry of Trade, Industry and Energy.
The overseas shipments dipped 8.0 percent in 2015 after growing 2.4 percent in the previous year.
The export fall for two years in a row was the second since related data began to be compiled in 1956. The first case was the exports in 1957 and 1958 that retreated 9.7 percent and 25.9 percent respectively.
Imports sank at a faster pace of 7.1 percent than exports to reach 405.7 billion dollars in 2016, leading to a trade surplus of 89.8 billion dollars. The 2016 surplus was down from 90.3 billion dollars tallied in 2015.
Last year's export fall came amid the global economic slowdown that hit the hardest the export-driven economy.
Samsung Electronics' decision to discontinue its lastest Galaxy Note 7 smartphone and labor strikes in major car manufacturers dragged down exports and production in major export items.
The ministry expected the country's exports to grow 2.9 percent in 2017 on the back of improved global recovery and stronger demand for major export items such as display panels, computers and oil products.
Imports are forecast to expand 7.2 percent this year on expected rise in crude oil prices, with its 2017 forecast for trade surplus set at 75 billion dollars.
The trade ministry said in a statement that the country's exports have been enhanced since September last year, with daily average exports rebounding in 22 months.
It unveiled a brighter outlook for this year's exports citing the expected economic recovery in the United States and emerging economies and higher export item prices, but the ministry cautioned that downside risks co-exist such as stronger protectionist moves and growing production in overseas factories.
In December 2016, the country's exports increased 6.4 percent to 45.1 billion dollars compared with a year earlier.
It was a continued growth momentum from a 2.5 percent rise in November after falling 5.9 percent in September and 3.2 percent in October each.
Daily average exports in December was 1.84 billion dollars, up 4.2 percent from a year earlier. It was the first gain in 22 months since February 2015.
Imports advanced 7.3 percent over the year to 38.1 billion dollars in December, sending last month's trade surplus to 7.0 billion dollars. The trade balance had stayed in the black for 59 months in a row.
Demand for locally-manufactured general machinery, petrochemicals, cars, medicine and medical supplies turned stronger, posting the biggest monthly exports in 2016. Shipments in medicine and medical supplies registered the record high of 380 million dollars last month.
Ship exports sank 14.1 percent in December amid the ongoing restructuring of major shipbuilders and shipping companies.
By region, exports to China, South Korea's No.1 trading partner, was 12 billion dollars last month, the largest since October 2015. Those to the United States declined 2.3 percent on soft demand for car parts, telecommunication devices and petrochemicals.
Shipments to Japan and the Association of Southeast Asian Nations (ASEAN) kept rising last month, with those to the European Union (EU) and Latin American countries rebounding from the previous month's negative increase.
A single purchase
