South Korea’s exports continued to fall in November
2022.11.29 01:27
South Korea’s exports continued to fall in November
Budrigannews.com – A Reuters poll found on Tuesday that an economic slowdown in China and a downturn in the tech industry were to blame for South Korea’s exports suffering their second month of declines in November at their steepest rate in two and a half years.
According to the median forecast of 20 economists, the country’s outbound shipments would have decreased by 11.0 percent in November compared to the same month a year earlier. This would be the worst annual decline since May 2020 and would accelerate a loss of 5.7% that occurred in October.
After a 23-month growth streak that ended in September, there were two months in a row of year-over-year declines.
According to Chun Kyu-yeon, an economist at Hana Securities, “Exports to China are declining at an accelerating pace due to the country’s economic slowdown, while semiconductor exports, which account for about a fifth of South Korea’s total exports, remain sluggish.”
“We expect South Korea’s exports to continue their declining trend through the first half of 2023” in light of the global economic slowdown and declining trade volume.
South Korea’s total exports decreased by 16.7% year-over-year during the first 20 days of this month.Result, semiconductors fell 29.4%, and by objective, shipments to China – its greatest exchanging accomplice – dropped 28.3%.
According to the median forecast, which ranged from -5.0% to +6.4%, imports were anticipated to have increased by 0.2 percent, which was just enough to extend their streak of gains to a 24th month but was significantly slower than the 9.9% growth the month before.
The overall trade balance is expected to remain in deficit for the eighth month in a row, putting it on track for the first and largest annual deficit in 14 years.
On Thursday, December 1, at 0900 local time (0000 GMT), the complete monthly trade data will be made available.
The country’s consumer price index was also expected to rise by 5.1% in November, down from 5.7% in October and the lowest annual rate in seven months, according to the survey.
After a decrease of 1.8% in September, economists anticipated that South Korea’s factory output would continue to decline for a fourth month in October, falling 1.0% seasonally adjusted.
