Korea: Merchandise exports grow at a milder pace in August
Merchandise exports climbed 6.6% on an annual basis in August (July: +9.2% year-on-year). Meanwhile, merchandise imports shot up 28.2% on an annual basis in August (July: +21.8% yoy).
As a result, the merchandise trade balance deteriorated from the previous month, recording a USD 9.5 billion shortfall in August (July 2022: USD 4.8 billion deficit; August 2021: USD 1.6 billion surplus). Lastly, the trend deteriorated, with the 12-month trailing merchandise trade balance recording a USD 16.1 billion deficit in August, compared to the USD 5.0 billion deficit in July.
Analysts at Nomura commented on the trade outlook:
“As Nomura’s tech team expects global chip sales to decline by 6% in 2023 after an 8.3% increase in 2022, downside risks on export growth are rising. Indeed, we believe there is a high probability of a decline in export growth in coming months, which will end the two-year long expansion in the export sector.”