Left Menu
Development News Edition

South Korea's March exports climb for seventeenth straight month, misses forecast

Booming demand for South Korean memory chips and computers across China and Europe lifted March exports, while shipments to the United States fell as the economy faced more assertive U.S. trade policies.


South Korea's March exports climb for seventeenth straight month, misses forecast
South Korea's March exports climbs (Image Credit: Reuters)

South Korean exports grew less than expected in March, adding to worries about the outlook for global demand amid growing fears of a U.S-China trade war.

Shipments grew 6.1 percent to $51.6 billion from a year earlier, below 7.5 percent seen in a Reuters survey but outperforming a revised 3.9 percent expansion in February, government data showed on Sunday.

Imports increased 5 percent to $44.7 billion, less than the 6.2 percent growth economists had expected and compared with a revised 14.9 percent in February.

That resulted in a trade surplus of $6.9 billion, up from $3.2 billion in the previous month.

The soft February readings were likely skewed by the long Lunar New Year holiday which fell in the middle of the month this year but in late January last year.

Exports grew 10.3 percent in January-March combined from a year earlier, slower than the 14.6 percent expansion seen during the same period in 2017.

Booming demand for South Korean memory chips and computers across China and Europe lifted March exports, while shipments to the United States fell as the economy faced more assertive U.S. trade policies.

"Exports growth is steady, it's likely to continue to post single-digit expansion. But there's dangers of a global trade war, a downside risk to Korea exports," said Park Sang-hyun, a Seoul-based economist at HI Investment & Securities.

Shipments to the United States declined 1 percent in the first 20 days of March from a year earlier even as Korean memory chips sold well, as American demand for South Korean cars were sluggish.

Exports to China and the European Union jumped 16.6 percent and 24.2 percent, respectively.

The Bank of Korea expects the trade-reliant economy to expand by 3 percent this year after 3.1 percent growth in 2017, the fastest expansion since it grew 3.3 percent in 2014.

However, policymakers are wary of risks to exports as the Trump administration begins rolling out a series of punitive trade measures which would hit countries such as South Korea and its biggest trading partner, China.

The United States and South Korea agreed last week to revise their six-year-old free trade agreement with a side deal to deter competitive currency devaluation by Seoul and give more access for U.S. automakers and drugmakers to the South Korean market.

The deal also lifted the threat of a 25 percent U.S. tariff on imports of steel from South Korea in exchange for quotas that will effectively cut U.S. imports of Korean steel by about 30 percent. Without the agreement in place, the tariffs would take effect on May 1.

But President Donald Trump said on Thursday he may hold up the trade agreement reached with South Korea until after a deal is finalised with North Korea on denuclearization, increasing uncertainties for the trade outlook.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION/BLOG/INTERVIEW

Hyderabad Encounter: Time to review modern judiciary and restore people’s confidence

Its probably for the first time in the history of independent India, the parliamentarians, chief ministers and ministers in the Union and State governments are openly supporting an encounter. This indicates the people from top to bottom hav...

What happens to your outstanding loans if the bank falls?

... ...

Time for a change! Innovations to stop the growing plastic pollution

As the planet is drowning in plastic pollution, many new innovative approaches and solutions have emerged to effectively deal with the menace....

How to avoid fake universities and fishing bait like Farmington

As education sharks are roaming around to prey, we present a guide on how to mitigate hunters and reach to a genuine universityinstitute. In this era of commercialization of education, the fake universities and economic frauds in educationa...

Videos

Latest News

FACTBOX-Reactions to Iran-U.S. prisoner swap

The United States and Iran swapped prisoners - an American detained for three years on spying charges and an imprisoned Iranian - on Saturday in a rare act of cooperation between two longtime foes.Following are reactions to the swapU.S. PRE...

London Bridge terrorist buried in Pakistan-occupied Kashmir

Usman Khan, the convicted terrorist of Pakistani origin who killed two people in the London Bridge attack before being shot dead by the Scotland Yard, has been buried at his ancestral village in Pakistan-occupied Kashmir PoK. However, the F...

Fix climate crisis because Earth is all we've got, Physics Nobel prize winner says

Fix the climate crisis and save the Earth, one of this years Nobel laureates for physics urged on Saturday, saying the idea of humans escaping our planet to live in other solar systems was farfetched and unrealistic. Swiss astronomer Didier...

IYC, NSUI members take out candlelight march demanding justice for family of Unnao rape victim

Members of the Indian Youth Congress IYC and National Students Union of India NSUI on Saturday took out a candlelight march here demanding justice for the family of Unnao rape victim. The IYC took out the march from the Assam Bhawan to Utta...

Give Feedback