Korea: Exports rebound in July
August 16, 2013
In July, exports rose 2.6% over the same month last year, which contrasted the 1.0% drop recorded in June and overshot market expectations of a 2.1% rise.
According to the Ministry of Knowledge Economy (MKE), exports of wireless communication devices and semiconductors increased in July, offsetting the fall in exports of steel and LCD devices. Despite the annual increase, exports have been exhibiting a negative trend since the beginning of 2011. In the 12 months up to July, exports contracted 0.2% in annual terms (June: -1.2%).
Imports rose 3.2% in July, contrasting the 3.0% fall recorded in June. As a result, imports in the last 12 months fell 2.7% in July, an improvement from the 3.4% drop observed in June. The trade balance reached a surplus of USD 2.5 billion in July, which is below the USD 2.7 billion surplus tallied in the same month last year. In the 12 months up to July, the trade surplus reached USD 37.2 billion (June: USD 37.4 billion surplus).
FocusEconomics Consensus Forecast panellists expect exports to expand 8.6% in 2013 and accelerate to 10.7% in 2014.