S.Korea July exports jump for ninth straight month, though pace slows By Reuters

0
44


By Cynthia Kim

SEOUL (Reuters) – South Korea’s exports jumped in July as overseas demand for chips and biohealth products extended export growth to a ninth straight month, supporting an economic recovery facing headwinds from the worst COVID-19 outbreak yet.

Exports rose 29.6% in July from a year earlier, slowing from 39.8% in June on a fading base effect from last year’s slump. The July figure fell short of 30.2% growth predicted by analysts in a Reuters survey.

Imports soared 38.2% from a year earlier and compared to a 40.7% rise in June.

With consumer sentiment weakening at home due to tightened social distancing measures since mid-July, the Bank of Korea is counting on global demand to lead economic growth seen at 4% for this year.

While growth in exports was expected to slow, July exports of chips and biohealth products were brisk, gaining 39.6% and 27.2%, respectively.

Exports of petrochemical products also surged 59.5%, while cars and computers increased 12.3% and 26.4% respectively.

“Demand for main exports items across chips, cars and petrochemical products remains strong, as economic recovery is being led by advanced nations,” said Chun Kyu-yeon, Hana Financial Investment analyst.

“Having said that, the pace of growth will weaken on fading base effects, and some hiccups in supply chain is raising logistical costs also.”

South Korea is currently battling its worst COVID-19 outbreak with record numbers of cases per day in the past week. Tighter curbs were enacted to prevent spread of the coronavirus during South Korea’s peak summer holiday season.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.