By Joori Roh and Jihoon Lee
SEOUL (Reuters) – South Korea’s exports likely expanded for a third straight month in January on continued strong chip sales and overseas demand, a Reuters poll showed on Thursday, underpinning export-led recovery hopes in the economy.
Overseas sales in the first month of 2021 were seen increasing 9.8% from a year earlier, according to a median estimate of 12 economists.
That would be slower than a 12.6% rise in December, when it marked the sharpest growth in over 2 years, but remaining on a recovery track that began in November.
“Interim exports data showed that the two key semiconductor and auto sectors were pretty strong with double-digit growth. We also noticed the sustained strength of exports to the U.S. and EU despite the worsening of the pandemic in these two major economies,” said Oh Suktae, economist at Societe Generale.
Preliminary data showed shipments of chips and cars jumped 11.6% and 15.7%, respectively, during Jan. 1-20.
Imports were expected to have risen 1.9% in January, after growing 2.2% last month, on higher oil and commodity prices.
Economists see vaccine distribution and easing of coronavirus-related regulations in major economies to further tow the export recovery track.
“Vaccination is already underway in some of South Korea’s major trading partners, which will likely lead to a more sustained relaxation of social distancing measures. This should support a rebound in global trade this year, providing a tailwind for South Korean exports,” said Lloyd Chan, an economist at Oxford Economics.
Trade data for January will be out on Feb. 1 at 9 a.m. local time (0000 GMT).
Meanwhile, 15 economists predicted industrial output in December would expand by a seasonally adjusted 1.2% month-on-month, after rising 0.3% a month earlier.
Nine economists also estimated consumer prices in January would rise a median 0.3% year-on-year, slowing from December’s 0.5% rise.
(Reporting by Joori Roh; Editing by Rashmi Aich)
