SEOUL, July 1: South Korea reported today its biggest trade surplus in 21 months as rising exports to the Middle East and Southeast Asia offset falling demand from the United States and Europe.
Exports in June rose 1.3 per cent from a year ago to reach USD 47.4 billion, after shrinking for three straight months. Imports fell sharply by 5.4 per cent to USD 42.4 billion, the Knowledge Economy Ministry said in a preliminary tally.
That resulted in a trade surplus of USD 4.96 billion in June—the biggest since USD 6.34 billion posted in October 2010, the ministry said.
Economists polled by Dow Jones Newswires had expected exports to grow one per cent and a trade surplus of USD 3 billion in June.
Increased sales of cars, machinery and semiconductors as well as solid demand in emerging economies in Latin America and Asia helped offset shrinking sales in advanced markets particularly debt-hit Europe, said the ministry.
Asia’s fourth-largest economy saw exports to the Middle East expand about 14 per cent in June from a year ago while sales to members of the Association of Southeast Asian Nations rose by a similar pace.
Exports to Europe dropped by 16.6 per cent while sales in the US fell 3.5 per cent.
But worsening trade conditions including Europe’s raging debt woes and signs of a slowdown in China would hit Seoul’s export-driven economy, said the ministry, cutting its forecast for exports in 2012.
It said exports for this year would rise 3.5 per cent from 2011 to reach USD 574.5 billion, revising its earlier estimate that exports would grow 7.2 per cent to reach USD 595 billion. (Agencies)
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