Seoul, May 30 (BNA): South Korea’s export growth is expected to rebound in May, but the trade balance likely remained in the red, while consumer inflation is expected to rise above 5% for the first time in nearly 13 years, according to For a Reuters poll. Show on Monday.
Outbound shipments increased 19.3% in May from a year earlier, according to the median forecast of 19 economists, accelerating from the 12.9% revised annual growth seen in April, ending two months of slowdown, Reuters reported.
Although the South Korean economy remains under pressure, economists attributed the growth to the calendar effect of additional work days and a recovery in shipments to China.
“We believe exports to China started to return to normal in May after a dip in April, thanks to the easing of restrictions at major ports and factories,” said Oh Suk Tae, an economist at Societe Generale.
In the first 20 days of this month, the country’s exports to China increased by 6.8% compared to the same period a year earlier. Full month exports to China in April fell 3.4%.
Imports saw imports outperform exports with a growth of 31.9%, according to the survey, and it also accelerated from 18.6% in April to the fastest rise in four months.
The country’s trade balance showed a deficit of $2.59 billion, according to an average of 16 forecasts, after a deficit of $2.5 billion the previous month.
Trade data will be released on June 1 at 9 am (0000 GMT).
Meanwhile, the CPI for May was expected to rise 5.1% from a year earlier, according to the median forecast of 21 economists, accelerating from a 4.8% rise in April and the fastest rate since September 2008.
Industrial production was expected to post a seasonally adjusted 1.2% decline in April from the previous month, after six consecutive months of expansion.