South Korea’s exports increased for a sixth consecutive month in April as a recovering global economy boosted demand for semiconductors and cars.
Overseas shipments rose 31.5 percent from a year earlier to $39.88 billion, the Ministry of Knowledge Economy said in Gwacheon today. That compared with the median forecast of a 31.8 percent gain in a Bloomberg News survey of ten economists. Imports climbed 42.6 percent to $35.47 billion, leaving a trade surplus of $4.41 billion.
Economies across Asia are reporting faster growth as the region leads the world out of the worst global recession since World War II. Samsung Electronics Co., Asia’s biggest maker of semiconductors, flat screens and mobile phones, posted a seven- fold increase in profit for the first quarter and Hyundai Motor Co. boosted sales in the U.S. and China this year.
“Both exports and imports will likely grow further as the global economy is gathering pace,” Kim Jae Eun, an economist at Hyundai Securities Co. in Seoul, said before the report. “It will lead to a strong start for the second quarter.”
Overseas sales to China, the biggest buyer of South Korean goods, rose 50.4 percent in the first 20 days of April, today’s report showed. Shipments to the U.S. climbed 28.5 percent and those to Japan gained 32.4 percent over the same period.
The World Bank forecasts China’s economy will expand 9.5 percent this year, with imports climbing 16.4 percent. The International Monetary Fund this month upgraded its global growth forecast for 2010 to 4.2 percent from 3.9 percent.
Display Panels
Shipments of semiconductors increased 97.9 percent last month and display-panel exports gained 38.4 percent, according to today’s report. Overseas sales of cars advanced 61.8 percent.
South Korea, Asia’s fourth-largest buyer of crude oil, imported 1 percent less of the fuel in April from a year earlier, the ministry said today. Imports declined to 69.6 million barrels last month from 70.3 million barrels a year ago.
Taiwan’s exports climbed in March for a fifth month, soaring 50.1 percent from a year earlier, as a pickup in global growth boosted demand for the island’s electronic goods. Malaysia’s shipments rose 18.4 percent in February from a year earlier after advancing 37 percent in the previous month, the most in more than 11 years.
South Korea’s government forecasts exports will rise 13 percent this year to $410 billion, compared with a 14 percent decline in 2009. The nation’s trade surplus in the second quarter is expected to be bigger than the reading in the first three months of the year which was $3.3 billion, the ministry said today.
Factory Output
Industrial production in South Korea grew for a ninth straight month in March, jumping 22.1 percent from a year earlier, the statistics office said yesterday. That was more than the 19.8 percent median forecast in a Bloomberg News survey of 14 economists.
Asia’s fourth-largest economy accelerated more than estimated last quarter as the global recovery spurred demand for electronics and consumer spending advanced, prompting the government to warn about speculative gains in the currency.
As stronger growth pushed the won close to a 19-month high against the U.S. dollar, the Ministry of Strategy and Finance said on April 27 that investors have bet “excessively” on the currency’s rise. A strong won could hurt exporters.
‘Upward Pressure’
The government’s comments on the won put a brake on the currency’s appreciation. The currency, which has gained 15 percent in the past year, rose 2.1 percent in April. The Kospi stock index yesterday closed 0.8 percent higher at 1,741.56, advancing for the 12th straight week, the longest winning streak since June 2007.
“Strong exports and foreign investors’ purchase of Korean stocks and bonds will likely add upward pressure on the won, which will likely prompt more government intervention,” Kim at Hyundai Securities said.
The Bank of Korea kept the benchmark interest rate at a record-low 2 percent for a 14th straight month on April 9 as the government presses for low borrowing costs to spur the economy ahead of provincial elections in June.
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