South Korean exports in the first part of July fell at the fastest pace since March, dampening hopes that a slowdown in global trade might be turning a corner.
(Bloomberg) — South Korean exports in the first part of July fell at the fastest pace since March, dampening hopes that a slowdown in global trade might be turning a corner.
Daily shipments dropped 15.2% on average in the first 20 days of July from a year earlier, the customs office said Friday. While total exports fell by the same margin, chip sales slid by more than a third, and shipments to China fell by 21.2%.
South Korea is one of the world’s largest exporters, shipping a wide range of goods that makes its trade data a key indicator of the health of the international economy. Global activity has been restrained by high inflation and rising interest rates.
In Korea, shipments have been declining since late last year as semiconductor prices have slid and demand from China weakened. The slump seemed to be showing signs of a bottoming out in June when Korea reported its first trade surplus in 16 months.
The latest data show both factors are still weighing on export performance. Uncertainties remain high over the timing of a rebound in the chip industry and the recovery in China.
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