Weak sales to China contracts South Korea’s October exports
South Korea’s exports likely contracted in October, falling for an 11th straight month. This was pressured by weak sales to China and a sluggish global demand for semiconductors.
However, economists expect the decline to wear out as favorable base effects would likely kick in starting from November.
The projected October fall would be the fifth month of double-digit percentage decline for the export-reliant economy.
“Sustained weakness in semiconductor exports seen after the release of the interim figures is worrisome given that base effects helped semiconductors turn positive in October,” said Oh Suk-tae, economist at Societe Generale.
Oh said favorable base effects on overall exports should kick in from November onwards, adding that “we will carefully monitor whether there are any signs of true recovery in exports.”