First trade surplus in nearly a year and a half
South Korea's exports continued to grow in February, adding to the optimistic outlook for economic growth and global business this year.
According to data from the Ministry of Industry, Trade and Resources of Korea on March 1st,South Korea's exports in February this year were US$52.41 billion, up 4.8% year on year, and continued to grow for 5 consecutive months.
Judging from the export items,The export value of the main product semiconductor was 9.9 billion US dollars, an increase of 66.7% over the previous year.The increase hit the highest value in nearly 76 months. Exports from the display (20.2%), solid-state drive (18.4%), general machinery (1.2%), shipping (27.7%), and biohealth (9.3%) industries all increased. Exports of wireless communication equipment and automobiles decreased by 16.5% and 7.8% year-on-year.
By destination, South Korea's exports to China fell 2.4% year on year in February, but it still achieved its first monthly trade surplus since September 2022; exports to the US increased 9% to 9.8 billion US dollars, a record high for two consecutive months. Exports to Japan (1%), ASEAN (1.4%), Latin America (25.1%), and the Middle East and the Commonwealth of Independent States (21.4%) all increased.
In the same period, imports amounted to US$48.11 billion, a year-on-year decrease of 13.1%. As a result,The trade balance achieved a surplus of US$4.29 billion in FebruaryIt has maintained a surplus for 9 consecutive months since June of last year.
Driven by strong demand for semiconductors, its exports rebounded from a year-long slump at the end of last year, once again sending a signal of accelerated economic recovery, indicating that global demand is recovering.
The Bank of Korea kept its forecast of 2.1% gross domestic product (GDP) growth unchanged in 2024 last week, indicating a recovery in exports. The central bank said that if this trend continues until 2025, it will help the economy grow by 2.3%.
Despite this, slowing consumption and falling construction investment still pose a threat to South Korea's economic growth momentum. The country is also wary of the impact of ongoing geopolitical tension, including the Middle East conflict. The series of elections scheduled to be held around the world this year has also increased uncertainty about global trade policies.
The International Monetary Fund (International Monetary Fund) said that the global economy is expected to grow by 3.1% this year, which is lower than the historical average, as some central banks continue to crack down on inflation, while fiscal support weakens, and debt risks drag down economic activity.
Fitch Ratings said earlier this month: “As demand for artificial intelligence stimulates the memory upgrade cycle, the operating performance of Korean memory chip makers should improve over the next two years.” “The challenging economic outlook and continuing geopolitical tension remain major risks.”