Seoul: South Korea’s export growth decelerated for the fourth consecutive month in November, reaching its lowest level in 14 months. Shipments to major trading partners like the United States and China faced setbacks, largely due to ongoing tariff uncertainties and global demand shifts, according to data released on Sunday.
Exports from Asia’s fourth-largest economy rose by just 1.4% in November compared to a year earlier, a significant slowdown from October’s 4.6% growth, totaling $56.35 billion. While this marks the 14th straight month of year-over-year export increases, the growth rate was the slowest during this streak, falling short of the median forecast of 2.8% growth from economists surveyed by Reuters.
The decline in shipments to the United States, which fell by 5.1%, marked the first downturn since July 2023. Similarly, exports to China, South Korea’s largest trading partner, dropped 0.6%, ending a streak of eight consecutive months of growth. However, exports to the European Union showed a slight increase of 0.9%.
A closer look at key sectors revealed mixed performance. Semiconductor sales grew by 30.8%, the weakest pace in 11 months, while car exports plummeted by 13.6%, marking the largest drop since June 2020. The automotive sector’s decline was attributed to strikes at major auto parts manufacturers and delays in shipping caused by adverse weather conditions.
Also Read | IoD: UK Business Optimism Falls to Lowest Point Since COVID-19 Pandemic
“The government will team up with the private sector and utilize all available resources to export even a dollar more by the end of the year,” stated South Korea’s Trade Minister Ahn Duk-geun.
On the import side, South Korea saw a 2.4% drop in imports, reaching $50.74 billion. This was a contrast to the previous month’s increase of 1.7% and was also below the 0.4% expected by economists, marking the first import decline in five months.
Also Read | China’s 46-Year Green Wall: Battling Desertification Around Taklamakan
Despite the slower export growth, South Korea recorded a trade surplus of $5.61 billion in November, widening from the $3.15 billion surplus in October.
