South Korea’s exports slump eased further last month in a positive sign for an economy that depends heavily on trade.
Shipments adjusted for working-day differences decreased 2.1 percent from a year earlier, the customs office said yesterday.
Headline exports fell 4.4 percent last month, compared with an 8.3 percent drop in the previous month. Economists had forecast a 9.3 percent decline.
Photo: EPA-EFE/Yonhap South Korea
Overall imports fell 16.5 percent year-on-year, resulting in a trade surplus of US$3.7 billion last month.
South Korean exports began sinking late last year as semiconductor prices slid and demand from China weakened. Higher energy costs and interest rates have also weighed on the global demand South Korea depends on. Exports to the US increased 9 percent last month from a year earlier, while those to China gained for a second month.
South Korea is one of the world’s largest exporters, with its manufacturers found in many global supply chains. Its global trade exposure makes it a useful indicator for world economic health.
Policymakers have voiced hope that exports would return to growth by the end of the year, with South Korean Minister of Economy and Finance Choo Kyung-ho saying last week that shipment growth might turn positive this month. The latest breakdown on technology exports, which account for about one-third of overall shipments, shows demand is starting to bounce back from a trough at the start of this year.
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