South Korea’s exports expanded at a faster-than-expected pace to a record in April, weathering gains by the nation’s currency.
Exports climbed 26.6 percent from a year earlier, compared with a revised 28.9 percent gain in March, the Ministry of Knowledge Economy said today. The median estimate in a Bloomberg News survey of 13 economists was for a 23.7 percent gain.
South Korea’s exports expanded at a faster-than-expected pace to a record in April, weathering gains by the nation’s currency.
Exports climbed 26.6 percent from a year earlier, compared with a revised 28.9 percent gain in March, the Ministry of Knowledge Economy said today. The median estimate in a Bloomberg News survey of 13 economists was for a 23.7 percent gain.
South Korea’s won has advanced to the highest levels since 2008, reaching 1,070.5 per dollar on April 29, as the nation reported accelerating economic growth. Deputy Finance Minister Choi Jong Ku said last week that it’s the government’s job to reduce exchange-rate volatility, adding that gains in the currency are partly from “speculative” trading.
“The won’s rise is likely to hurt exporters, and this bodes ill for economic growth,” Park Sang Hyun, chief economist at HI Investment & Securities Co. in Seoul, said before the release.
Gains in the currency are helping to curb inflation that exceeded the central bank’s 4 percent target ceiling in each of the first three months of the year. Exports are equivalent to about half the economy and boosted earnings last quarter at companies including Hyundai Motor Co., South Korea’s largest carmaker.
Best-Performing Currency
The won gained 3.6 percent in the past month, the best performer among the 10 most actively traded currencies in Asia excluding Japan, according to data compiled by Bloomberg.
Exports rose to record $49.77 billion from a revised $48.07 billion in March, today’s report showed. Imports climbed 23.7 percent to $43.95 billion. The trade surplus was $5.82 billion.
Shipments to Japan jumped 70.1 percent from a year earlier in the first 20 days of April, the ministry said. Shipments to China, the biggest buyer of South Korean goods, increased 9.3 percent. Exports to the U.S. rose 23 percent. Data for exports to individual countries are only available for the first 20 days of the month.
Exports of semiconductors fell 0.4 percent last month while oil product exports surged 79.8 percent, the ministry said. Shipments of vessels and vehicles gained 56.1 percent and 37.9 percent, respectively.
South Korea’s won has advanced to the highest levels since 2008, reaching 1,070.5 per dollar on April 29, as the nation reported accelerating economic growth. Deputy Finance Minister Choi Jong Ku said last week that it’s the government’s job to reduce exchange-rate volatility, adding that gains in the currency are partly from “speculative” trading.
“The won’s rise is likely to hurt exporters, and this bodes ill for economic growth,” Park Sang Hyun, chief economist at HI Investment & Securities Co. in Seoul, said before the release.
Gains in the currency are helping to curb inflation that exceeded the central bank’s 4 percent target ceiling in each of the first three months of the year. Exports are equivalent to about half the economy and boosted earnings last quarter at companies including Hyundai Motor Co., South Korea’s largest carmaker.
Best-Performing Currency
The won gained 3.6 percent in the past month, the best performer among the 10 most actively traded currencies in Asia excluding Japan, according to data compiled by Bloomberg.
Exports rose to record $49.77 billion from a revised $48.07 billion in March, today’s report showed. Imports climbed 23.7 percent to $43.95 billion. The trade surplus was $5.82 billion.
Shipments to Japan jumped 70.1 percent from a year earlier in the first 20 days of April, the ministry said. Shipments to China, the biggest buyer of South Korean goods, increased 9.3 percent. Exports to the U.S. rose 23 percent. Data for exports to individual countries are only available for the first 20 days of the month.
Exports of semiconductors fell 0.4 percent last month while oil product exports surged 79.8 percent, the ministry said. Shipments of vessels and vehicles gained 56.1 percent and 37.9 percent, respectively.
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