SEOUL: South Korea’s exports shrank for a 19th straight month in July, with the pace of decline picking up again after moderating for two months, according to the Ministry of Trade, Industries and Energy. The worse-than-expected July data damped market hopes that the export-led economy may be on track for recovery, reaffirming it still faces strong headwinds amid sluggish global trade.
Exports contracted 10.2% from a year earlier to $41.05 billion in July, following the previous month’s 2.7% drop, preliminary data released Monday by the ministry showed. The pace of decline had slowed in May and June. The July reading missed the median market forecast for a 7% contraction.
Imports dropped 14.0% from a year earlier to $33.25 billion in July, following a revised 7.7% decline in the prior month. The market had forecast a 9.5% fall for July. The trade surplus narrowed to $7.79 billion in July from the previous month’s revised $11.50 billion surplus, in line with expectations. Korean exports–which account for half of the country’s economic growth–have been declining since January in 2015 because of sluggish global trade, lower oil prices and a slowdown in China.
