Exports expected to stay strong in second half

Korea's exports are expected to remain resilient in the second half of the year on a series of positive external factors, the central bank said Wednesday.

The upbeat forecast by the Bank of Korea (BOK) comes amid a recent surge in Korea's overseas shipments on the back of a global economic recovery.

"With the impact of the IT sector's supply-side negative factors easing, major economies are likely to continue their rebound on an increase in global chip demand, the effect of U.S. stimulus and pent-up demand," the BOK said in a report.

Growth in overseas shipments of information technology products is projected to gather ground in the second half thanks to rising demand for server and mobile chips.'

Global demand for imports is likely to expand down the road on the back of a stimulus plan and a bill on infrastructure investment in the world's largest economy.

Pent-up demand in major economies is predicted to be strong in the latter half as consumption has yet to recover to pre-pandemic levels in China and the European Union.

Household saving rates remain high in America and the EU, which will have a positive impact on global trade, according to the report.

Korea's auto exports are projected to grow moderately in the second half despite a supply shortage of semiconductors used in cars.

The BOK also said China contributed more to Korea's exports than the U.S. in the first quarter of this year, though U.S. import demand led its overseas shipments in the second half of last year.

Korea's exports have been soaring in recent months. Exports, which account for about half of the nation's gross domestic production, spiked 45.6 percent on-year in May due to strong demand for chips amid the global economic recovery, following a 41.1 percent jump in April.

Yonhap