South Korea's overseas construction orders down 32 percent in H1Staff writer ▼ | July 1, 2015
Overseas construction orders won by South Korean builders dropped significantly from a year earlier in the first half, the government said.
Trade Low global oil prices led to a sharp drop
In the first six months of the year, overseas construction orders clinched by local builders came to US$25.47 billion, down 32.1 percent from the same period last year, according to the Ministry of Land, Infrastructure and Transport.
In the January-June period, construction orders from Middle Eastern nations tumbled 71.9 percent to $6.96 billion from $24.74 billion in the same period last year.
The average price of Dubai crude plunged nearly 45 percent to $57.70 in April from $104.60 per barrel in the same month last year.
On Monday, the price of Dubai crude, which accounts for about 80 percent of South Korea's overall oil imports, closed at $59.36 per barrel, according to the state-run Korea National Oil Corp.
The ministry said orders from Asian countries, on the other hand, more than doubled from $6.22 billion to $13.03 billion over the cited period.
Orders from Pacific and North American states amounted to $1.01 billion in the first half, compared with $130 million in the same period last year.
The ministry said local builders will likely continue facing difficulties in the second half, partly due to a continued drop in global oil prices, as well as global economic uncertainties. ■