South Korea’s September exports defied market expectations by decelerating their decline, indicating the gentlest contraction in a year of economic downturn—a promising development for the global economy, given South Korea’s status as a leading indicator for the industrial sector.
According to trade data released on Sunday, the overseas sales of Asia’s fourth-largest economy dropped by 4.4% compared to the same month the previous year, totaling $54.66 billion. This performance stands in contrast to the 8.3% decrease observed in August and the 9.1% downturn projected by economists.
This marked the twelfth straight month of export declines, but it was the least severe drop during this period.
The decrease in exports destined for China moderated to 17.6%, marking the slowest decline in eleven months. Meanwhile, exports to the United States increased by 8.5%, and those to the European Union grew by 6.5%.
Semiconductor exports decreased by 13.6%, marking the gentlest decline in a year. Conversely, automobile exports surged by 9.5%, machinery exports saw a 9.8% increase, and shipments of ships jumped by 15.4%.
Imports experienced a 16.5% decline, totaling $50.96 billion, which was a less severe drop compared to the 22.8% decrease in the preceding month and the expected median decline of 17.6%.
Consequently, South Korea achieved a trade surplus of $3.70 billion in September. This marked the fourth consecutive month of surplus and the largest surplus recorded since September 2021.
(Source: Jihoon Lee | Leslie Adler | William Mallard | Reuters)
