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S.Korea April export growth to hit 14-mth low; inflation near 11-yr high: Reuters poll -Breaking

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© Reuters. FILEPHOTO: Truck drives among shipping containers at Incheon port, Incheon (South Korea), May 26, 2016.REUTERS/Kim Hong Ji

Jihoon Le

SEOUL (Reuters – South Korea’s exports were expected to show the slowest growth for 14 months in April, and consumer inflation has reached a high of nearly 11 years. A Reuters poll on Thursday showed that.

According to 13 economists’ median predictions, outbound shipment growth was 14.5% higher than a year ago. This is the slowest rate of growth since February 2021.

According to Lloyd Chan (an Oxford Economics senior economist), “South Korea’s growth in exports is likely to slow due to a very large base effect” and slowing momentum of China.

China was the largest trading partner of the small neighbour and continued to enforce lockdowns in large cities to combat an increase in Omicron coronavirus infections in April.

The South Korean exports increased 16.9% in the 20-day period, compared to the previous year. However, shipments to China experienced a smaller growth of 1.8%.

The survey revealed that imports for the entire month grew 22.3% more than exports, making the country’s trade deficit for the second consecutive monthly.

Stephen Lee from Meritz Securities, senior economist said “South Korea will see its trade deficit continue to widen due to higher import price with a one-month delay to prices.”

On May 1, at 9:00 AM (0000 GMT), trade data will be available.

According to the median projection of 11 economists, 4.4% was expected to be the increase in consumer prices in April compared to the previous year. This is an acceleration from the 4.1% gain in March, and the highest rate since August 2011.

The March seasonally adjusted 0.2% decrease in industrial output is expected to be recorded after four months of continuous expansion.

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