SEOUL- South Korea’s exports are expected to have increased at a slower pace in June but posted doubled-digit growth thanks to a global economic recovery and strong overseas demand for the nation’s key export items.
Outbound shipments are forecast to have jumped a median 33.6 percent this month from a year earlier, a Reuters survey of 17 economists showed on Monday, amid strong overseas demand for South Korea’s semiconductors, cars and petroleum products.
That would be slower than the 45.6 percent expansion seen in May, when it logged the sharpest growth in 32 years, but extends export growth to an eighth straight month.
“Export growth will likely moderate in June as the favorable base effect fades away, but it should remain strong, buoyed by the upswing in the electronics cycle and the recovery in world trade,” said Lloyd Chan, an economist at Oxford Economics.
“We expect the external outlook to remain favorable in the second half as advanced economies start to reopen, keeping the year-on-year export growth rate in double digits.”
While economists see demand for semiconductors, cars and petrochemicals supporting export growth, the pace is seen slowing as demand from China, the nation’s biggest trading partner, weakens.
