South Korea¡¯s exports, which have been slowing so far this year, are expected to recover by the second half (H2) of this year, based upon a recent report.
The report released by the Hyundai Economic Research Institute (HERI) forecast that the nation¡¯s H2 exports will record growth in the 10 percent range given the growing signs of recovery in the USA and other advanced nations and upturn in Korea¡¯s IT exports.
Korean exports have been decelerating at a noticeable rate so far this year, as figures from January (-7.3 percent) and March (-1.4 percent) posted negative results.
According to the report, H2 will be expected to mark a clear turnaround in exports, based upon the fact that the composite leading indicators of many advanced nations - Korea¡¯s key export destinations - started to improve in the second quarter (Q2).
The International Monetary Fund (IMF) echoed such optimism as it readjusted this year¡¯s global growth forecast to 3.5 percent, which is 0.2 percentage points higher than its earlier forecast in January.
The IMF also raised growth forecasts for the USA and Japan by 0.3 percentage points and 0.4 percentage points, respectively, which also has positive implications for Korea¡¯s exports.
South Korea¡¯s exports have already been proved competitive in the emerging and advanced markets last year, and was able to maintain high growth rates this year, the report further explained.
Shipping vessels and automobile exports to emerging markets posted high growth of more than 22 to 35 percent, while automobile and petrol exports to the advanced nations also recorded high growth of between 35 to 55 percent.
The recent rebound in memory chip prices and expectations of greater demand for display panels during the London Olympics season will also help Korea¡¯s IT exports. Growing petroleum exports due to higher global oil prices, and the free trade agreements with the USA and EU will also help boost figures, the report added.
|