SEOUL- South Korea’s exports for the first 20 days of November shrank 16.7 percent from the same period a year ago, dragged down by weak demand for chips and from China, customs agency data showed on Monday.
The country’s imports fell 5.5 percent, bringing the trade balance to a $4.42 billion deficit, on track for an eighth straight month in the red.
Shipments to China dropped 28.3 percent, while those to the United States and European Union were up 11.0 percent and down 1.5 percent, respectively.
By product, sales of semiconductors fell 29.4 percent and wireless communication devices lost 20.6 percent, but those of cars and petroleum products gained 28.6 percent and 16.1 percent each.
Exports shrank 11.3 percent on average per working day.
South Korea’s exports in October fell the most in 26 months while a trade deficit persisted for a seventh month, underscoring that Asia’s fourth-largest economy is slowing and its currency is hovering near 13-year lows.
Exports fell 5.7 percent from a year earlier to $52.48 billion in October, preliminary government data showed, the fastest drop since August 2020, and worse than a median 3.0 percent loss predicted in a Reuters survey.
Exports to China, its largest market, fell 15.7 percent in October from a year earlier as the world’s second-largest economy is slowing from a mix of factors, including strict restrictions to stop the spread of COVID-19.
“There is little hope for a sharp turnaround soon as China’s demand will remain weak and the (global) semiconductor industry is experiencing still growing inventory levels,” said Chun Kyu-yeon, economist at Hana Securities.
A survey by S&P Global of purchasing managers at South Korean manufacturing companies also showed new export orders in October fell for an eighth consecutive month as the global economy is slowing.
Imports jumped 9.9 percent to $59.18 billion in October. As a result, the country posted a trade deficit of $6.70 billion, bigger than a shortfall of $3.78 billion in September and the seventh consecutive month of imports outweighing exports.
