Korea April exports surge at sharpest pace in more than a decade

03-May-2021 Intellasia | CNA | 5:02 AM Print This Post

South Korea’s exports expanded at its sharpest pace in more than a decade in April, boosted by those of semiconductors, cars and petrochemical products, highlighting a continued trade-led recovery in Asia’s fourth-largest economy.

Exports surged 41.1 per cent from a year earlier, trade ministry data showed on Saturday (May 1), marking the fastest growth since January 2011 and extending the expansion to a sixth month in a row.

That missed a 44 per cent increase forecast by 14 economists in a Reuters poll, but was much sharper than a 16.5 per cent growth in March.

The data was also supported by a low base in 2020 as exports plunged at their sharpest pace since the global financial crisis in April last year.

South Korea’s monthly trade data, the first to be released among major exporting economies, is a closely watched indicator as it is considered a bellwether for global trade.

Outbound shipments of semiconductors, the country’s top export, jumped 30.2 per cent year-on-year and for a 10th straight month, while those of cars and petrochemical products soared 73.4 per cent and 82.6 per cent, respectively.

All 15 major export items increased last month, with 13 of those growing at a double-digit rate.

By destination, exports to China, the United States and the European Union rose 31.7 per cent and 43.0 per cent and 43.0 per cent each, while those to the other six major trading partners also increased.

Meanwhile, data showed imports grew 33.9 per cent, beating forecasts for a 31.2 per cent jump. That brought the trade surplus down to $0.39 billion from $4.13 billion a month ago.

“Both exports and imports rose more than 30 per cent this month as domestic demand and strong exports boosted production and investment activities in businesses,” the trade ministry said in a statement.

The central bank sees a “mid-3 per cent” growth “very possible” for this year, up from a previous projection of 3 per cent. It will release the revised forecast later this month.



Category: Korea

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