South Korea’s Exports Expected to Rise for 11th Consecutive Month in August
South Korea’s exports are projected to increase for the 11th straight month in August, driven by strong demand from China and the U.S., while inflation is expected to reach the central bank’s 2% target.
Bollywood Fever: South Korea’s exports are anticipated to rise for the 11th consecutive month in August, according to a Reuters poll conducted between August 23-28.
The poll, which surveyed 16 economists, also suggested that consumer inflation in South Korea is expected to drop to the central bank’s medium-term target of 2% for the first time in nearly three and a half years.
The median estimate from the survey predicts a 13.0% year-on-year increase in exports for August, slightly down from July’s robust 13.9% rise, which was the strongest since January.
Economists point to strong demand for South Korean goods, particularly semiconductors and U.S. shipments related to artificial intelligence, as key drivers behind this growth.
South Korea, being the first major exporting economy to report monthly trade figures, offers an early insight into global demand trends.
The nation’s exports have been on an upward trajectory since October 2023, bolstered by the tech sector and a recovery in Chinese demand.
Exports of IT products, including semiconductors and computer parts, are continuing to grow at a fast speed, while car sales are also seen swinging back to growth,” noted Stephen Lee, an economist at Meritz Securities.
In the first 20 days of August, exports surged by 18.5%, with shipments of semiconductors and automobiles increasing by 42.5% and 7.9%, respectively. Exports to the United States rose by 18.0%, while those to China grew by 16.3%.
“Most of all, the recovery in China-bound shipments will lead the export growth in August,” said Park Sang-hyun, an economist at iM Securities.
The poll also forecast a 6.3% year-on-year increase in imports for August, which is a slowdown from July’s 10.5% gain, the fastest since September 2022.
South Korea’s trade balance is expected to post a surplus for the 15th consecutive month, with the median estimate at $4.67 billion, up from $3.60 billion in July.
In terms of inflation, the survey predicts that South Korea’s annual inflation rate likely slowed to 2.0% in August, down from 2.6% in July, marking the weakest rate since March 2021.
South Korea is scheduled to report its trade figures for August on Sunday, September 1, at 9 a.m. (0000 GMT), with inflation data following on September 3.
Also Read other news articles, BNB Chain Launches Official Bridge to Enhance Cross-Chain Interoperability
Bitcoin’s Pre-Election Dips: A Recurring Pattern Leading to Post-Election Rallies
Dollar Steadies Amid Anticipation of Key U.S. Inflation Data; Fed Rate Cut Expectations Grow
