Strong Im/Ex Market Fuels South Korea Trade Growth
Date: Friday, November 30, 2018
Source: Inbound Logistics
Air trade in South Korea will remain steady due to strong exports of high technology, basic materials, and machinery parts, as well as imports of industrial raw materials and machinery parts, predicts the DHL Global Trade Barometer, an early indicator of global trade developments calculated using artificial intelligence and big data. The Barometer also expects ocean imports to perform well, mainly fueled by basic raw materials, chemical products, and personal and household goods.
"South Korea's major industries continue to underpin global innovation in technology," says SP Song, managing director, DHL Global Forwarding Korea. "Exports of memory chips, for example, jumped 31.5 percent from the year before to help fuel an 8.7-percent increase in the country's exports in August 2018.
"The government has also proposed a 2019 budget of 471 trillion won (US$420 billion)—the highest increase in 10 years—with a focus on amplifying employment and innovation, contributing to a positive trade outlook in the months to come," Song adds.
The Barometer's results also suggest that despite intensifying global trade disputes, mainly between China and the United States, world trade is expected to grow over the next few months, albeit at a slower pace. The growth outlook looks positive for all Asia Pacific countries, with India leading the ranks, along with optimistic outlooks for South Korea, China, and Japan. This is testament to the Asian economy's resilience, especially in technology and manufacturing.
In the Global Trade Barometer methodology, an index value higher than 50 indicates positive growth, while values below 50 indicate contraction.