South Korea’s early trade report showed exports surging in April, buoyed by a recovery of global commerce and a low year-earlier base when the pandemic forced lockdowns across the world.
Exports rose 45.4 percent in the first 20 days of the month from a year earlier, the customs office reported on Wednesday. Average daily shipments gained 36 percent in the period, which had one more business day compared with 2020.
Gains were broad-based across regions and products, with exports of cars, mobile communication devices and petroleum products all gaining by more than 50 percent. Semiconductor shipments rose 38.2 percent.
“While the growth numbers have been boosted by low base effects, underlying momentum remains solid, with exports adjusted for working days up 11 percent relative to the same period in 2019,” said Krystal Tan, an economist for Australia & New Zealand Banking Group.
The report bolsters the view that a pickup in vaccinations across the world are paving the way for a bounce back in demand. Korean exports serve as a proxy for the health of global commerce as its manufacturers are positioned widely across supply chains.
Korea has seen overseas demand improve beyond chips, with the full-month report for March showing sales growth for 14 out of 15 key export items. Central bank Governor Lee Ju-yeol said last week that Korea’s export performance will help the economy expand in the mid-3 percent range this year, above the 3 percent growth forecast in February.
Exports to China, Korea’s largest overseas market, rose 35.8 percent between April 1 to 20 from a year earlier. Shipments to the US were up close to 40 percent, while those to the European Union surged 63 percent. Sales to Japan gained 21.3 percent.
South Korea’s overall imports rose 31.3 percent in the first 20 days of April.
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