SEOUL: South Korea’s exports, as well as imports, are expected to have rebounded in November on year-on-year terms. According to a Societe Generale research report, exports are likely to have increased rather considerably to USD 46.5 billion in November from USD 42 billion in October. Meanwhile, imports are expected to have increased to USD 36.2 billion from USD 35 billion.
The usual volatility in the shipbuilding sector and the normalization of auto production after the labor strike are likely to have partially driven the expected strong export result. Moreover, there are signs of improvement in underlying export momentum, stated Societe Generale. The likely increase in imports is expected to be favorable for the growth outlook, but the expected jump in year-on-year growth might partially be due to base effects. In all, recovery in export is expected to somehow counter a slowdown in domestic demand in the fourth quarter. Both coincident and leading indicators of construction activity have already indicated signs of weakness, added Societe Generale.