South Korea’s October export growth slows to seven-month low
SOUTH South Korea’s export growth slowed to a seven-month low in October, missing market expectations, in a sign of cooling global demand that puts further pressure on a stuttering economic recovery.
Outbound shipments from Asia’s fourth-largest economy rose 4.6 per cent from a year earlier to US$57.52 billion, compared with gains of 7.5 per cent the month before and slowing for the third month, official data on Friday showed. A Reuters poll of economists had tipped a 6.9 per cent rise.
It was the 13th straight month exports grew in annual terms though they were the smallest increase since March.
On average per working day, exports were down 0.2 per cent, their first fall since September 2023.
The trade data aligns with a survey showing South Korea’s factory activity shrank for a second month in October, with output falling by the most in 16 months.
The trade-reliant economy barely grew in the third quarter, despite signs of recovery in consumer spending, as exports weakened, raising the chance for more stimulus to support growth.
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Exports of semiconductors were up 40.3 per cent to US$12.5 billion in October, which was lower than an all-time high of US$13.6 billion in September. Sales of cars rose 5.5 per cent.
By destination, shipments to China rose 10.9 per cent to a 25-month high of US$12.2 billion. Those to the United States and European Union were up 3.4 per cent and 5.7 per cent, respectively.
Imports rose 1.7 per cent to US$54.35 billion in October, after gaining 2.2 per cent in September, also weaker than a 2.0 per cent rise expected by economists.
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The country posted a monthly trade surplus of US$3.17 billion, narrower than the previous month’s US$6.66 billion. REUTERS
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