Posted on 04 Nov 2008
Exports expanded 10 percent in October from a year earlier after climbing 28.2 percent in September, the Ministry of Knowledge Economy said. That was the lowest growth since overseas shipments fell 1.1 percent in September 2007.
Then nation's think tanks predicted
"The financial crisis originating from the United States has developed into a global downturn in real economies, raising concerns about exports of endurable consumer goods to developed nations and intermediate and capital goods to emerging nations," Yoon Sang-ha, a researcher at LG Economic Research Institute, said.
Yoon expected next year's export growth to slow to 8.9 percent. Samsung Economic Research Institute also forecasted an 8.3 percent export growth for 2009 and Korea Institute of Finance presented a 6.1 percent outlook for next year.
Exports of 10 out of 13 main export items went down in October from a year ago.
Exports of automobiles, semiconductors, electronics and computers fell by double-digits.
Automobile exports slumped 14.3 percent in October compared with a 31.9 percent jump a year ago. The sharp decline is due to sluggish car sales and increased production overseas, the ministry said.
Semiconductor exports also posted their fourth consecutive monthly decline, sliding 26.4 percent last month, due to oversupply and price falls. Semiconductors were the nation's top export item last year, but fell to seventh in October.
Electronics exports plunged 28.4 percent as demand and prices tumbled despite the start of the buildup to Christmas. That compared with a 6.3 percent increase a year ago. Computer shipments also plummeted 37 percent in October, compared with a 15.7 percent rise a year ago.
Exports of petrochemical products and liquid crystal devices dipped by single-digits, with 0.2 percent and 2.9 percent, respectively.
Overseas shipments of auto parts and machinery also sharply went down. Auto parts exports rose 5.6 percent in October, down from a 49.5 percent increase a year ago on stagnant car sales.
Machinery export growth also fell from 58.3 percent to 3.6 percent during the same period due to tepid demand in advanced markets.
Wireless communications equipment exports went up 13.5 percent in October, down from a 40.5 percent surge from a year ago. The growth is attributed to the expansion of third-generation mobile services in advanced markets and rising demand in emerging countries.
Textile export growth also slipped to 5.8 percent in October compared with 19.5 percent growth a year ago due to shrinking consumption in the
Gasoline, diesel and other petroleum products topped the nation's exports in September with a 91.2 percent jump. But as oil prices fell, petroleum export growth almost halved to 45.2 percent, although that is higher than last year's 40.5 percent.
Ships, petrochemical products and steel bucked the trend, with their overseas shipments going up year-on-year.
