Berita 24 English - South Korea's exports are expected to have increased at the fastest rate in more than three decades in May, owing i...
Berita 24 English - South Korea's exports are expected to have increased at the fastest rate in more than three decades in May, owing in part to strong global demand for the country's primary foreign exchange earners, such as semiconductors, automobiles, and petroleum products.
International sales are expected to increase 48.5 per cent this month compared to a year ago, according to the median forecast of 11 economists surveyed by Reuters on Friday.
This outcome, which also reflects a low base in 2020, would represent the largest increase since August 1988 and extend a seven-month streak of gains. April exports increased by 41.2 per cent.
"Even without the base effect, the recovery in advanced economies' demand and increased trade volume will result in strong exports," said Chun Kyu-Yeon, an economist at Hana Financial Investment.
She noted that sales of chips, automobiles, auto parts, and petroleum products are likely to have contributed to the month's increase in exports.
Exports to China, the United States, and the European Union increased by 25.2 per cent, 87.3 per cent, and 78.1 per cent, respectively, while semiconductors, automobiles, and petroleum products increased by 26.0 per cent, 146.0 149.7 per cent.
While the pace of shipment growth is expected to slow as base effects fade, economists remain optimistic about the export outlook, expecting the sector to support Asia's fourth-largest economy as it recovers from last year's COVID-19-induced downturn.
"Export growth will moderate gradually as the base effect subsides, but the global manufacturing boom and revenge spending trend will likely support domestic exports for the foreseeable future," said Park Sang-Hyun, chief economist at HI Investment & Securities.
Additionally, Wednesday's poll predicted that imports would have increased 40.5 per cent, the highest rate since May 2010, due to higher oil and commodity prices.
Tuesday at 9:00 a.m. local time, the full month's trade data will be released (0000 GMT).
Separately, 12 economists forecast that April industrial output would increase by a seasonally adjusted 1.5 per cent month on month, reversing a 0.8 per cent decline in March.
Additionally, economists forecast that consumer prices will rise a median of 2per content from a year ago this month, the fastest pace since March 2012 and accelerating from a 2.3 per cent increase in April.
(This story updates the third paragraph's date to August 1988, not September 1988, and the 12th paragraph's date to March 2012, not December 2015).
