S. Korea’s exports may rise in June – poll

South Korea’s exports are expected to reach 6.3 per cent in June compared to a year earlier, marking a ninth consecutive month of growth, a Reuters poll showed on Thursday.

South Korea’s export growth slowed in May to 11.5 per cent, the slowest since March. Economists attributed this to calendar effects, with fewer working days in June this year compared to last year.

Strong demand for semiconductors, particularly from the United States, is projected to be the main driver of export growth. US-bound shipments now account for roughly 20 per cent of South Korea’s total exports.

Early data for the first 20 days of June supports the positive outlook. Exports rose 8.5 per cent year-over-year during this period, led by a remarkable 50.2 per cent jump in chip exports.

Furthermore, shipments to the US surged by 23.5 per cent, while those to China saw a more modest increase of 5.6 per cent.

South Korea’s exports are projected to rebound to near record levels in the first half of this year, according to the finance minister. In the second half, exports may benefit from a global economic recovery, but growth rates could be lower compared to last year due to strong previous performance.

The Finance Minister anticipates South Korea’s exports will approach record highs for the first half of 2024. However, economists predict that exports may benefit from a global economic recovery, but annual growth rates could be lower.

Imports are expected to fall by 2.2 per cent year-over-year in June, following a 2.0 per cent decline in May. This is likely to lead to a larger trade surplus, with a median estimate of $5.24 billion for June, exceeding the $4.86 billion surplus in May.

Attribution: Reuters