‘Exports to pick up in 2nd quarter‘

By Bahk Eun-ji

Exports are expected to bounce back in the second quarter of this year, with leading indicators both at home and abroad pointing to a recovery, according to Korea Eximbank.

In its export outlook report in April, the state-run bank forecast that exports, the key locomotive for the nation’s economic growth, will grow 3 percent year-on-year between April and June from the same period last year.

“The 3-percent growth rate is still low, but the figure suggests that Korea’s external shipments have started to pick up,” said Lee Jae-woo, a research fellow for the Korea Eximbank Overseas Economic Research Institute.

The forecast is based on its leading index for the country's overseas shipments, which reflects economic conditions of importing countries and export price levels of local goods.

He said that the outlook has turned more optimistic due to a recovery in advanced economies and robust performance of the information technology sector.

“Leading indicators from the United States and Japan, such as the unemployment rate, are showing signs of a turnaround. The information technology and shipbuilding industries are also likely to support exports, as they see sharp improvements in earnings,” Lee said.

In its latest report, the U.S. Labor Department announced the jobless rate unexpectedly dropped to 8.2 percent in March and employers added 120,000 new jobs.

The think tank expected that the Korean won’s depreciation and stabilizing raw material prices will combine to improve profitability for Korean exporters in the coming months.

The writer is a Korea Times intern.