S. Korea’s Export Expected to Grow Nearly 7%

Seoul, June 25 (QNA) – South Korea’s export is expected to increase 6.8% in the second half of the year from a year ago to record a yearly trade surplus higher than government projection, a report showed Wednesday.

The Institute for International Trade, run by the Korea International Trade Organization (KITA) said that South Korea’s trade surplus is expected to come in at US$18.7 billion in the second half, as its exports are forecast to reach $302.4 billion, up 6.8% from a year ago, with its imports rising 9.5% to $283.7 billion, according to South Korea’s (Yonhap) News Agency.

“A rise in exports of high-priced ships, auto parts and steels in the second half will improve the country’s trade conditions,” the institute said.

However, exports of mobile phones and chips are likely to slow down due to lackluster demand and lowered prices, it said.

The country’s first-half exports were estimated at $285.7 billion, up 3.3% from a year ago, while imports rose 3.7% to $265.9 billion.

For all of 2014, the country is forecast to record $38.5 billion in trade surplus, as exports are expected to gain 5.1% to $588.1 billion and imports are predicted to rise 6.6% to $549.6 billion.

The yearly figure for trade surplus is $5 billion higher than the government estimate, it said.

“The second-half exports will be weighed down by concerns over the US interest rate hike, China’s slowing economic growth, Iraqi crisis, and the strengthening of oil prices and the South Korean won,” said Oh Se-hwan, a senior researcher at the institute. (QNA)

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