( Seoul, 21st July 2020 ) South Korea’s early trade data showed that as the pandemic continues to hit global commerce and overseas demand is weak, exports will again see a monthly decline in July.
According to customs data, exports in the first 20 days of July fell by 13% year-on-year. Exports to China, South Korea’s largest overseas market, fell 0.8%. Semiconductor exports fell by 1.7%. Data on Tuesday showed that although South Korea’s exports may continue to decline throughout July, the decline has slowed down from April and May, when exports fell by about a quarter.
Although China's economic rebound supports South Korean exports, the full recovery will depend on the pace of recovery of activities in other major economies such as the United States and Europe.
"China's focus on economic recovery remains on the domestic market and local companies," said Daniel Liu, global strategist at Yuanta Securities Korea.
"Therefore, we need to be patient before South Korea's exports resume growth."
The 20-day data is released before most other trade reports, so it is closely watched as an early measure of global economic activity. The number of new crown infections in some countries is increasing, forcing the government to implement new restrictions. Coupled with the ongoing tensions between China and the United States, the outlook for world trade continues to be challenged.
From July 1 to 20, exports to the United States fell by 2.4%, exports to the European Union fell by 12%, and exports to Japan fell by 22%. South Korea’s overall imports fell by 14% in the first 20 days of July.
**Info & Image are taken online
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