Skip to main content
Best News Website or Mobile Service
 
WAN-IFRA Digital Media Awards Worldwide
Best News Website or Mobile Service
 
Digital Media Awards Worldwide
Hamburger Menu

Advertisement

Advertisement

Business

South Korea Oct exports post worst fall in 26 months, deficit widens

South Korea Oct exports post worst fall in 26 months, deficit widens

A truck carrying a shipping container travels past cranes at Pyeongtaek port in Pyeongtaek, South Korea on Jul 9, 2020. (File photo: Reuters/Kim Hong-Ji)

SEOUL: 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 per cent from a year earlier to US$52.48 billion in October, preliminary government data showed on Tuesday (Nov 1), the biggest percentage fall since August 2020, and worse than a median 3.0 per cent loss predicted in a Reuters survey.

Exports to China, its largest market, fell 15.7 per cent 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.

Local markets, however, showed a muted reaction to the sluggish data as investors focused on the US Federal Reserve's policy meeting this week.

The outlook remains dark as the global economy is losing momentum on a global wave of policy tightening to contain inflation.

"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 per cent to US$59.18 billion in October. As a result, the country posted a trade deficit of US$6.70 billion, bigger than a shortfall of US$3.78 billion in September and the seventh consecutive month of imports outweighing exports.

The deficit will further pressure the country's won currency, already among Asia's poorest performers this year, down 17 per cent of its value from end-2021 against the dollar and hovering near its weakest in over 13 years set in late October.

Source: Reuters/st

Advertisement

Also worth reading

Advertisement