South Korea exports post sharpest expansion in 26 months in December, but slide 5.4% year-on-year in 2020

By Joori Roh SEOUL (Reuters) - South Korea's exports expanded at their fastest pace in 26 months in December, on robust chip demand and improved global demand, providing additional signals that the recovery is on track despite resurgences in the novel coronavirus. Exports in the final month of 2020 grew 12.6% year-on-year, the sharpest growth since October 2018 when it grew 22.5%, government data showed on Friday. The rate of growth was sharply higher than forecast as analysts had expected a 5.6% jump from a year earlier, and was much faster than a 4.1% growth in November.

Reuters January 01, 2021 07:05:17 IST
South Korea exports post sharpest expansion in 26 months in December, but slide 5.4% year-on-year in 2020

South Korea exports post sharpest expansion in 26 months in December but slide 54 yearonyear in 2020

By Joori Roh

SEOUL (Reuters) - South Korea's exports expanded at their fastest pace in 26 months in December, on robust chip demand and improved global demand, providing additional signals that the recovery is on track despite resurgences in the novel coronavirus .

Exports in the final month of 2020 grew 12.6% year-on-year, the sharpest growth since October 2018 when it grew 22.5%, government data showed on Friday.

The rate of growth was sharply higher than forecast as analysts had expected a 5.6% jump from a year earlier, and was much faster than a 4.1% growth in November.

"Semiconductor exports were exceptionally strong, with 11 of 15 major export items posting growth ... sales of IT products boosted the overall growth," a trade ministry official told Reuters.

South Korea's monthly trade data, the first to be released among major exporting economies, is considered a bellwether for global trade.

Overseas sales of semiconductors surged 30% from a year earlier, marking the sharpest expansion since August 2018, towing the overall exports recovery.

Other major items such as mobile devices, displays and computers also soared 39.8%, 28.0% and 14.7% year-on-year.

By destination, exports to China, South Korea's biggest trading partner, gained 3.3% from a year ago, and those to the United States and European Union jumped 11.6% and 26.4%.

Imports rose 1.8%, reversing a 1.9% decline in November and marking the best reading since April 2019. Reuters' poll had expected a 2.6% decline.

Meanwhile, for the whole of 2020, South Korea's exports slid 5.4% as the coronavirus pandemic swept world trade, but that was much better than a 10.4% fall in 2019, the worst in a decade and the third-worst in the country's modern history.

South Korea's financial markets are closed on Friday for the New Year's Day holiday and will resume trade on Monday.

(Reporting by Joori Roh; Editing by Daniel Wallis)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Elon Musk leaves behind Amazon's Bezos to become world's richest person - Bloomberg News
Business

Elon Musk leaves behind Amazon's Bezos to become world's richest person - Bloomberg News

(Reuters) -Tesla Inc chief and billionaire entrepreneur Elon Musk surpassed Amazon.com Inc's top boss Jeff Bezos to become the world's richest man, Bloomberg News reported on Thursday.

Daimler starting year with optimism after strong finish to 2020 - CEO
Business

Daimler starting year with optimism after strong finish to 2020 - CEO

FRANKFURT (Reuters) - Daimler is starting the year with optimism after a strong finish to 2020, Chief Executive Ola Kaellenius said on Thursday, adding that sales in the fourth quarter had continued the strong trend seen in the preceding three months.

Oil hits 11-month highs on Saudi cuts, shrugs off U.S. unrest
Business

Oil hits 11-month highs on Saudi cuts, shrugs off U.S. unrest

By Laura Sanicola NEW YORK (Reuters) -Oil prices edged higher on Thursday, hitting 11-month peaks as markets remained focused on Saudi Arabia's unexpected pledge to deepen its oil cuts and firmer equities, shrugging off political unrest in the United States. Brent crude rose 18 cents to $54.48 a barrel by 1:32 p.m. EST (1832 GMT) after touching $54.90, a high not seen since before the first COVID-19 lockdowns in the West.