[Photo by Export-Import Bank of Korea]
Exports in South Korea are expected to jump 35 percent from April to June compared with the same period last year in what would be the steepest gain in 10 years, a research arm of state lender Export-Import Bank of Korea projected on Monday.
According to forecast by EXIM Bank, the nation’s overseas shipments would reach $150 billion in the April-June period, up 35 percent on year. It would be the fastest growth since the first quarter in 2010 when the country saw its exports soar 35.8 percent from a year earlier.
The bank said the economic recovery and stimulus packages of the United States and China, Korea’s largest trading partners, and base effect from sharp drop in exports at 20.3 percent in the same period last year would produce a big rebound in exports in the second quarter.
The nation’s export leading indicator gained 9.0 points from the previous year and 4.4 points from the previous quarter to 125.5 for the second quarter.
The leading indicator extended its growth in three consecutive quarters, implying a strong recovery of exports.
However, delay in vaccination and spread of infections with Covid-19 variants could slow down the recovery momentum, the state bank said.
According to a survey conducted on 46 large companies and 409 small- and mid-sized ones, 39.6 percent said the hardest part of their export business is the poor consumption and investment of countries to which they ship their products.
It was followed by volatile foreign exchange rate at 29.9 percent, increase in raw material prices 26.2 percent and low prices from developing countries 25.7 percent.
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]