A closely-watched indicator of global economic health crashed 24% in April, the biggest drop since the global financial crisis

• South Korea's exports in April suffered the worst drop since the global financial crisis, as overseas sales of the country's top trading goods were paralyzed by the devastating effects of the coronavirus.
• The Asian economy is considered to be a forerunner among major trading economies that routinely release data on trade.
• South Korean exports slumped to 24.3% year-on-year in April. Last month, exports dropped only 0.2%.
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South Korean exports in April dropped at their sharpest rate since the financial crisis with outbound shipments to all regions falling as the coronavirus pandemic cripples trade and causes an immense blow to demand for goods.

Asia's fourth largest economy saw exports fall 24.3% in April to $36.9 billion compared to the same period a year ago, the country's trade ministry announced on Friday.

The economy's exports dropped only 0.2% in March and had risen 4.5% in February.

At the same time, the country's imports in April fell 15.9% to $37.9 billion, leading to a trade deficit of $950 million.

The bleak numbers reflect a downward spiral for the South Korean economy as the pandemic bites. South Korean export data is routinely considered a forerunner among major exporting economies that release data on trade.

That's because the numbers are usually released before the first trading session of the month in Asia, which makes it the first of the world's major economic indicators to be drop each month.

South Korea's trade ministry attributed the sharp drop in exports to a 15% fall in prices of goods and services. Meanwhile, daily average export volume fell only 2.9%, considering a variation in the number of working days.

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In 2019, the country shipped products worth $542 billion around the globe, roughly 2.8% of overall global exports estimated at $19 trillion for 2018.

A breakdown of the ministry's data showed that outbound sales to the Association of Southeast Asian Nations fell 32.9% to $5.7 billion on its top income earners including semiconductors, general machinery, displays, and petroleum products.

Petrochemical exports fell 33.6% to $2.6 billion as a direct consequence of falling oil price and shutdowns in the automobile and home appliance industries.

Because South Korea's exports are heavily exposed to China and Japan — the world's second and third largest economies — it is considered to have strong predictive power as an economic indicator.

In addition to being an early report, the South Korean export data is also considered a leading indicator for world trade, meaning it tends to augur what's happening in trade globally.