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SEOUL: Robust demand for South Korean chips helped Asia’s fourth-largest economy post export growth for a sixth consecutive month in March, albeit at a pace slightly slower than expected, pointing to continued recovery in the global economy.
Exports rose 3.1% from the same period a year prior to $56.56 billion, missing a gain of 5.2% tipped in a Reuters poll of economists.
That followed a 4.8% increase a month earlier, hinting at recovery in global economic momentum as South Korea’s dominance in semiconductors and other high-tech goods makes the country a barometer for global demand.
Imports declined 12.3% in March from the same month a year earlier to $52.28 billion, deeper than a 8.1% fall seen in the poll but easing slightly from a 13.1% drop in February.
Overseas sales of chips grew for a fifth successive month, rising 35.7% and logging the best performance by value in two years, trade ministry data showed. Increasing demand for artificial intelligence-related memory is driving semiconductor sales, as the world’s two biggest makers of memory chips – Samsung Electronics and SK Hynix – flagged improving chip demand for the year ahead.
Exports of computers and mobile communication devices increased 24.5% and 5.5% respectively, while that for cars declined 5%.
By destination, exports to China rose 0.4% from a year earlier and those to the United States increased 11.6%.
Separate data released on Monday however showed weaker manufacturing activity in March as slowing domestic demand offset robust overseas sales.
The purchasing managers index stood at 49.8 in March on a seasonally adjusted basis, from 50.7 in February, the data showed.
Firms surveyed for the index mentioned “a muted domestic economy holding back production and sales” due to high borrowing costs.
Exports rose 3.1% from the same period a year prior to $56.56 billion, missing a gain of 5.2% tipped in a Reuters poll of economists.
That followed a 4.8% increase a month earlier, hinting at recovery in global economic momentum as South Korea’s dominance in semiconductors and other high-tech goods makes the country a barometer for global demand.
Imports declined 12.3% in March from the same month a year earlier to $52.28 billion, deeper than a 8.1% fall seen in the poll but easing slightly from a 13.1% drop in February.
Overseas sales of chips grew for a fifth successive month, rising 35.7% and logging the best performance by value in two years, trade ministry data showed. Increasing demand for artificial intelligence-related memory is driving semiconductor sales, as the world’s two biggest makers of memory chips – Samsung Electronics and SK Hynix – flagged improving chip demand for the year ahead.
Exports of computers and mobile communication devices increased 24.5% and 5.5% respectively, while that for cars declined 5%.
By destination, exports to China rose 0.4% from a year earlier and those to the United States increased 11.6%.
Separate data released on Monday however showed weaker manufacturing activity in March as slowing domestic demand offset robust overseas sales.
The purchasing managers index stood at 49.8 in March on a seasonally adjusted basis, from 50.7 in February, the data showed.
Firms surveyed for the index mentioned “a muted domestic economy holding back production and sales” due to high borrowing costs.
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