South Korea | Rising trade momentum bodes well for growth
South Korea’s trade has remained resilient despite rising global Covid cases, with export and import momentum gaining further traction. We expect exports will be supported by strong imports from advanced economies, memory chip demand, and seasonal demand for certain key items, which will help cushion near-term headwinds from softer regional demand and Covid-related supply disruptions. Rising vaccination rates could allow domestic restrictions to ease in Q4, which will also provide impetus for import growth.
What you will learn:
- Sustained gains were seen across major export items, such as semiconductors, automobiles, and petroleum products.
- We expect strong import demand from advanced economies will continue to underpin South Korean exports through the rest of the year, as restrictions there have eased, and consumer confidence is holding up.
- Semiconductor exports will also remain firm, driven mainly by sustained demand for memory chips to be used in servers, PCs, and mobiles.
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