South Korea’s exports declined for a seventh month in April, the worst losing streak in three years, led by a prolonged drop in sales to China and reflecting continued pressure on the economy from weak global demand.
Despite the December reopening of the Chinese economy, a major market for South Korean goods, especially chips, the downturn challenges policymakers as they seek a strong post-COVID recovery.
On Monday, trade ministry statistics revealed that Asia’s fourth-largest economy’s overseas sales plummeted 14.2% to $49.62 billion in April, following a 13.6% loss in February and a 13.5% drop predicted by Reuters.
It was the worst drop in three months and reinforced signs of a domestic economy struggling in the face of slowing global growth.
Exports to China fell 26.5% for the 11th straight month, while those to the US declined 4.4% for the first time in three. EU exports grew by 9.9%.
Semiconductor shipments fell 41.0% for the eighth straight month. On the other hand, automobiles rose 40.3%, while petroleum declined 27.3%.
The commerce ministry attributed the drop to a delayed global economic recovery, semiconductor sector slowdown, fewer working days, and high base effects.
After a 6.4% drop in March, imports plunged 13.3% to $52.23 billion in April, quicker than the 10.6% experts projected. The greatest decline since August 2020.
The export-reliant economy had a trade imbalance of $2.62 billion in April, the lowest since June.
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