S. Korea’s exports to fall for third month in row – Poll

South Korea’s export growth is projected to fall for the third consecutive month in October due to weakening global demand for computer chips, a Reuters poll showed on Wednesday.

Economists expect a 6.9 per cent increase in outbound shipments compared to the previous year, marking the 13th consecutive month of growth but slightly lower than September’s 7.5 per cent rise and the slowest rate since June.

“It is likely export growth has entered a slowing trend with IT demand beginning to gradually weaken amid limited demand for non-semiconductor exports,” said Chun Kyu-yeon, an economist at Hana Securities.

South Korea, a key exporting economy, will release its October trade data on Friday, Nov. 1, at 9 am (00:00 GMT). The economy struggled in the third quarter with minimal growth, primarily due to a decline in semiconductor exports to the US.

Analysts are concerned about the impact on economic growth if the slowdown in semiconductor exports continues. Oh Suk-tae, analyst at Societe Generale, highlighted the stagnant trend in semiconductor exports in recent months.

Exports in the first 20 days of this month dropped by 2.9 per cent, with shipments to the US and the European Union falling by 2.6 per cent and 8.9 per cent respectively, while exports to China increased by 1.2 per cent.

Imports are expected to rise 2.0 per cent in October, following a 2.2 per cent increase in September. The trade balance for October is projected to reach a $4.23 billion, compared to $6.66 billion in the previous month.

Attribution: Reuters

Subediting: Y.Yasser