SEOUL: Contrary to market expectations, South Korea’s exports fell more slowly in September, the slowest drop in a year of economic stagnation, and a sign of hope for the global economy from a leading industrial economy.
Sunday’s trade statistics showed overseas sales in Asia’s fourth-largest economy fell 4.4% from a year earlier to $54.66 billion, but fell 8.3% in August, according to a Reuters poll of economists. It was a decrease of 9.1%.
Exports decreased for the 12th consecutive month, but the decline was the lowest on record.
The decline in exports to China slowed to 17.6%, the lowest level in 11 months, while exports to the United States rose 8.5% and exports to the European Union rose 6.5%.
Semiconductor exports fell by 13.6%, the lowest decline in a year. Exports of automobiles increased by 9.5%, machinery by 9.8%, and ships by 15.4%.
Trade Minister Pan Mun-gyu said exports continue to improve and are now at an “inflection point” towards a transition to growth.
Imports fell 16.5% to $50.96 billion, also slower than the previous month’s 22.8% decline and the median estimate of a 17.6% decline.
As a result, the country posted a trade surplus of $3.7 billion in September. The surplus was the fourth consecutive month and the largest since September 2021.