South Korea Exports Set to Rise for 11th Month, Inflation to Hit 2% Target: Multibagger Poll
South Korea's exports are expected to continue their upward trend for an 11th consecutive month in August, driven by strong demand from China. At the same time, consumer inflation is projected to reach the central bank's target of 2% for the first time in nearly 3-1/2 years.
Economists predict that exports in August will increase by 13.0% compared to the previous year, slightly lower than the 13.9% growth seen in July. The surge in exports is mainly attributed to the booming demand for South Korean IT products, particularly semiconductors and computer parts.
In the first 20 days of August, exports surged by 18.5%, with semiconductors and automobiles leading the way with significant growth. Shipments to the United States and China also saw substantial increases, indicating a strong global demand for South Korean goods.
On the other hand, imports are expected to rise by 6.3% year-on-year, a slowdown from the previous month. Despite this, the country's trade balance is forecasted to maintain a surplus for the 15th consecutive month.
In terms of inflation, the survey suggests that annual inflation will ease to 2.0% in August, down from 2.6% in July. This marks the weakest inflation rate since March 2021.
Overall, the data points towards a positive outlook for South Korea's economy, with robust export growth and stable inflation. Investors and consumers alike can take this information into consideration when making financial decisions, as it indicates a favorable environment for investments and spending.