SEOUL- South Korea’s exports likely grew for the first time in seven months in September due to more working days than a year earlier and heavy shipments of microchips as China’s Huawei Technologies stockpiled ahead of US sanctions, a Reuters poll showed.
Going forward, economists surveyed by Reuters expected South Korea’s exports to suffer as major overseas markets have been hit by second waves of coronavirus, which will keep global demand subdued.
September shipments were seen rising 2.0 percent from a year earlier, according to a median estimate of 18 economists, the first growth since February and rebounding sharply from a 10.1 percent plunge in August.
“Exports will likely post growth for the first time since the COVID-19 outbreak due to more working days, pre-orders ahead of Chuseok holiday and Huawei’s chip stockpiling,” said Park Sang-hyun, Hi Investment & Securities’ chief economist.
There are 23 working days this month, 2.5 days more than a year earlier, as the Chuseok holiday fell in mid-September last year.
Economists have attributed export growth in preliminary data to stockpiling by Huawei ahead of US sanctions which kicked in on Sept. 15.