Korea: Exports contract in September
October 15, 2013
Korean exports registered USD 44.7 billion in September, which marked a 1.5% contraction compared to the same month last year (August: +7.6% year-on-year). The reading represented the steepest drop in seven months; however, it undershot market expectations of a 2.0% contraction. According to the Ministry of Trade Industry and Energy, the drop in exports reflected lower overseas shipments of oil products, passenger vehicles and mobile communications.
Meanwhile, imports contracted 3.6% in September, which contrasted the 0.9% increase observed in August. The trade balance showed a USD 3.7 billion surplus in September, which was above the USD 2.9 billion surplus tallied in the same month last year.
FocusEconomics Consensus Forecast panelists expect exports to expand 4.0% in 2013 and accelerate to 10.7% in 2014.
Author: Ricardo Aceves, Senior Economist