Jihoon Kim

SEOUL (Reuters – South Korean export growth should have recovered in May. However, the trade balance will likely remain in red. On Monday, Reuters reported that consumer inflation rose above 5%, for the first time since nearly 13-years.

The median forecast by 19 economists showed that outbound shipping volumes were 19.3% higher than they were a year before. It was up from 12.9% annual growth recorded in April. They also ended two months in slowdown.

South Korea’s economy remains under severe pressure due to China’s COVID-19 lockingdown and the Ukraine crisis. However, economists attribute the increase to the calendar effect of two additional working days and an improvement in China shipments.

Oh Suk Tae, Societe Generale’s economist said that China exports have started to recover in May following a dip in April. This is due to the lifting of restrictions at major ports and factories.

China exported 6.8% to the United States in the 20 first days of April compared with the previous year. In April, the country’s full-month exports to China were 3.4% lower than in March.

According to the survey, imports grew 31.9% faster than exports, up from 18.6% in April and the fastest increase in four months.

After a $2.5 Billion deficit the month before, the country’s trade deficit was forecast at $2.59B. This median estimate of 16 forecasts indicated.

Data on trade will be made available at 9 AM, (0000 GMT) June 1.

The median prediction of 21 economists for the May consumer price index was 5.1% higher than the previous year. It is up from the April 4.8% increase and has been growing at the fastest pace since September 2008.

The April seasonally adjusted industrial output will show a 1.2% decrease in April compared to the previous month. This follows six months of continuous expansion.