A truck carrying a shipping container travels past cranes at Pyeongtaek port in Pyeongtaek, South Korea, July 9, 2020. REUTERS/Kim Hong-Ji/File Photo
SEOUL, Sept 1 (Reuters) – South Korea’s exports accelerated in August, towed by solid demand for memory chips, petrochemicals and other major items, with the trade ministry seeing only a limited impact from the coronavirus Delta variant across the region.
Exports rose 34.9% in August from a year earlier, accelerating from 29.6% in July but falling short of 35.7% growth predicted
in a Reuters survey.
Imports soared 44.0% from a year earlier, the fastest growth since May 2010 and quicker than
a 38.1% rise in July. That brought the trade balance to a $1.67 billion surplus.
Breakdown of Wednesday’s data showed exports of semiconductors, petrochemicals and cars jumped 43.0%, 81.5% and 16.9%, respectively, while those of wireless devices, biohealth products and secondary batteries soared 62.2%, 17.1% and 10.9%, respectively
.
By destination, overall exports to China, the United States and European Union rose 26.8%, 38.1% and 41.6%, respectively.
“Despite concerns about production disruptions due to the spread of the recent Delta variant … its impact on exports is seen limited so far,” the ministry said in a statement.
“As the global Delta variant spread and shipping delay remain as risks, however, the ministry will make all-out efforts to sustain the export momentum in the second half of the year.”
South Korea has been setting record numbers of COVID-19 cases in the past weeks, even as tighter curbs were enforced
to prevent the spread of the Delta variant during its peak summer holiday season.
A separate survey on Wednesday showed factory activity grew at a slower pace last month, as output contracted for the first time in 12 months and demand eased on surging virus infections and supply chain disruptions. read more
To support the pandemic-hit economy, the government on Tuesday unveiled a record 604.4 trillion won ($521.21 billion) budget plan for next year. read more
($1 = 1,159.6100 won)
Reporting by Joori Roh; Editing by Sam Holmes
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