South Korea’s exports could extend losses for the six month in a row as outbound shipments in the first 10 days of May falling 6.4 percent on year as escalated trade tensions between the United States and China sour global commerce.
According to the data from the Korea Customs Service on Monday, the country’s exports totaled $13 billion won in the first 10 days in April, down 6.4 percent from the previous year. Imports rose 7.2 percent to $15.27 billion, bringing trade deficit to $2.19 billion.
Daily exports averaged $2.01 billion, down 13.6 percent compared to the same period last year.
Last month, the outbound shipments in the first 10 days showed an 8.9 percent on-year gain to $15 billion, thanks largely to the longer working days of 8.5 days versus 7.5 days last year.
From May 1 to 10, exports of petroleum products rose 10.5 percent from a year ago, passenger cars increased 19.2 percent and wireless communications devices 17.5 percent. The growth was mainly driven by rising global oil prices and launch of new models.
On the other hand, semiconductor shipments plunged 31.8 percent, auto parts contracted 11.2 percent and display devices 48.3 percent.
The country’s imports of crude oil grew 16.8 percent over the same period, semiconductors 25.4 percent and gas 13.4 percent, while imports of machinery shrank 7.4 percent, passenger cars 5.8 percent and chip making equipment 47.1 percent.
By nation, exports to China declined 16.2 percent, the U.S. 2.8 percent and Middle East 30.3 percent. Exports to the European Union gained 0.4 percent, Vietnam 29.9 percent and Japan 13.1 percent,
Experts believe Korea’s exports would keep up the feeble growth for the next few months as the global economy is showing signs of contracting in the second half and demand for the nation’s key items would continue to slow down.
By Kim Tae-joon and Choi Mira
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]