South Korea’s exports increased year-on-year in October, the first increase in 13 months, mainly due to strong exports to the United States and slightly improved demand in China. Trade data showed South Korea’s overseas sales rose 5.1% year-on-year to $55.09 billion, slightly below expectations of 5.5%. The data marked the first year-over-year increase since September 2022, reversing last month’s 4.4% decline.
South Korea’s exports to the United States rose 17.3%, the highest level since May 2022, while exports to China fell 9.5%, the lowest level in 13 months. Automobile exports increased by 19.8%, increasing for the 16th consecutive month; exports of petroleum products also increased by 18% after declining for seven consecutive months. Although semiconductor shipments continued to decline, the decline in October was the smallest among the consecutive declines, at 3.1%. A separate survey showed South Korea’s factory activity shrank for a 16th consecutive month, but the decline in new export orders slowed. Still, demand in China remains weak.
South Korea’s imports fell 9.7% to $53.46 billion. Although the decline narrowed, it was still higher than economists expected. As a result, South Korea posted a trade surplus of $16.4 billion in October, in stark contrast to the deficit forecast by economists.
(Source: inquirer Image source: freepik)
