South Korea’s Early Exports Drop Further as Global Demand Cools

South Korea’s early trade data show a deepening slump in exports in the latest sign of a sputtering global economy.

(Bloomberg) — South Korea’s early trade data show a deepening slump in exports in the latest sign of a sputtering global economy.

Daily shipments decreased 23.1% on average in the first 20 days of March compared with a year earlier, the customs office said Tuesday. While total exports fell 17.4%, chip sales plummeted 44.7% and shipments to China dropped 36.2%.

Korean exports have been on the decline since late last year as semiconductor prices slid and demand from China weakened. Trade deficits have also continued to mount as energy prices remained elevated and the won deteriorated, pushing up import costs.

Korea is one of the world’s largest exporters, shipping a wide range of goods to nations around the world and serving as a key indicator of the health of the global economy.

A decline in sales suggests consumers and businesses are cutting back on spending worldwide, which would also have implications for Korea’s economy that already contracted last quarter.

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