South Korea Oct exports put up worst fall in 26 months, deficit widens By Reuters

By Choonsik Yoo and Jihoon Lee

SEOUL (Reuters) -South Korea’s exports in October fell essentially the most in 26 months whereas a commerce deficit continued for a seventh month, underscoring that Asia’s fourth-largest financial system is slowing and its forex is hovering close to 13-year lows.

The federal government held a gathering of senior officers from greater than 10 ministries and companies hours after the info was launched on Tuesday and pledged to “make each effort” to spice up exports, whereas saying any near-term turnaround can be tough.

Exports fell 5.7% from a yr earlier to $52.48 billion in October, preliminary authorities information confirmed, the quickest drop since August 2020, and worse than a median 3.0% loss predicted in a Reuters survey.

Exports to China, its largest market, fell 15.7% in October from a yr earlier because the world’s second-largest financial system is slowing from a mixture of elements, together with strict restrictions to cease the unfold of COVID-19.

Native markets, nonetheless, confirmed a muted response to the sluggish information as buyers targeted on the U.S. Federal Reserve’s coverage assembly this week.

“There may be little hope for a pointy turnaround quickly as China’s demand will stay weak and the (world) semiconductor business is experiencing nonetheless rising stock ranges,” mentioned Chun Kyu-yeon, economist at Hana Securities.

A survey by S&P International (NYSE:) of buying managers at South Korean manufacturing firms additionally confirmed new export orders in October fell for an eighth consecutive month as the worldwide financial system is slowing.

Imports jumped 9.9% to $59.18 billion in October. In consequence, the nation posted a commerce deficit of $6.70 billion, greater than a shortfall of $3.78 billion in September and the seventh consecutive month of imports outweighing exports.

The deficit will additional stress the nation’s received forex, already amongst Asia’s poorest performers this yr, down 17% of its worth from end-2021 in opposition to the greenback and hovering close to its weakest in over 13 years set in late October.