South Korea export growth slows to 7-month low in blow to economic recovery
2024.10.31 21:32
By Jihoon Lee
SEOUL (Reuters) -South Korea’s export growth slowed to a seven-month low in October, missing market expectations, in a sign of cooling global demand that puts further pressure on a stuttering economic recovery.
Outbound shipments from Asia’s fourth-largest economy rose 4.6% from a year earlier to $57.52 billion, compared with gains of 7.5% the month before and slowing for the third month, official data on Friday showed. A Reuters poll of economists had tipped a 6.9% rise.
It was the 13th straight month exports grew in annual terms though they were the smallest increase since March.
On average per working day, exports were down 0.2%, their first fall since September 2023.
The trade data aligns with a survey showing South Korea’s factory activity shrank for a second month in October, with output falling by the most in 16 months.
The trade-reliant economy barely grew in the third quarter, despite signs of recovery in consumer spending, as exports weakened, raising the chance for more stimulus to support growth.
Exports of semiconductors were up 40.3% to $12.5 billion in October, which was lower than an all-time high of $13.6 billion in September. Sales of cars rose 5.5%.
By destination, shipments to China rose 10.9% to a 25-month high of $12.2 billion. Those to the United States and European Union were up 3.4% and 5.7%, respectively.
Imports rose 1.7% to $54.35 billion in October, after gaining 2.2% in September, also weaker than a 2.0% rise expected by economists.
The country posted a monthly trade surplus of $3.17 billion, narrower than the previous month’s $6.66 billion.
