(Bloomberg) — South Korea’s exports maintained growth momentum in December as demand from China increased while semiconductor sales stayed resilient.
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The value of shipments adjusted for working-day differences increased 4.3% from a year earlier in December, according to data released Wednesday by the trade ministry. That compared with a 3.7% rise initially reported for the full month of November.
Unadjusted exports rose 6.6% while overall imports increased by 3.3%, resulting in a trade surplus of $6.5 billion.
South Korea, which relies heavily on exports to drive its economic growth, faces an array of protectionist policies promised by President-elect Donald Trump as he prepares to return to the White House.
Trump pledged universal tariffs during his campaign and aims to beef up duties particularly against China, the biggest trading partner for South Korea.
The Bank of Korea unexpectedly conducted back-to-back cuts to its benchmark interest rate in the fourth quarter to shore up the economy against trade headwinds. Governor Rhee Chang-yong sees the economy growing this year less than the 1.9% forecast previously.
Economists increasingly expect the central bank will go ahead with another cut this month as consumer and business confidence slump. A Jeju Air plane crash that killed all but two of its 181 people onboard may further dent consumer sentiment after the country announced a mourning period till January.
Weaker export momentum poses a threat to the won, which was already the worst performing currency in Asia last year. The nation’s semiconductor industry may experience slower demand this year after enjoying a boom on artificial intelligence development.
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