The Korean Customs service reported the country’s exports to grow by 29.3 percent on-year in the first 10 days of November. This was attributed to solid demand for chips and petroleum products.
According to the data, in the first 10 days of Nov. period, the country’s outbound shipments stood at US$18.3 billion, compared with $14.1 billion a year earlier.
Summary of imports and exports –
• The country’s imports rose 59 percent on-year to $21.2 billion, thus resulting in a trade deficit of $2.98 billion during the cited period.
• By sector, outbound shipments of memory chips rose 45.3 percent on-year in the reporting period.
• The country’s semiconductors exports accounted for about 20 percent.
• Exports of petroleum products rose 81.5 percent over oil prices remaining high amid the global economic recovery.
• The shipments of autos amid a global shortage of automotive chips rose 6.3 percent on-year.
• In the reporting quarter, the export growth of autos sharply slowed to 4.2 percent from a 71.9 percent on-year gain three months earlier. This was due to the supply crunch of auto chips dented vehicle output.
• South Korea’s autos exports accounted for some 7 percent.
• By country, shipments to China, the country’s largest trading partner, rose 34.9 percent on-year.
• While exports to the United States gained 20.8 percent.
• Exports overall grew 24 percent on-year in October, extending their gains to the 12th straight month.
According to Korea Development Institute (KDI), the South Korean economy is on a recovery track on the back of robust exports. As private spending is likely to pull off a robust recovery amid the vaccine rollout, it forecast’s the economy to grow 3 percent next year.
According to KDI, its 2022 growth outlook remained unchanged from its estimate in May. Whilst also being on par with the 3 percent growth estimates by the government and the Bank of Korea (BOK).
The state-run think tank revised up its growth outlook for the country’s economy this year to 4 percent from 3.8 percent.
On the other hand, the International Monetary Fund forecast 3.4 percent growth for Korea.