While analysts expected South Korea’s export to grow in 2,8% in February as year-on-year growth, the reality was significantly better, when export increased in 4,5%.
It took more than a year for South Korea’s export to grow. Yet, the growth was affected mainly by more working days and the fact that Koreans welcomed the Solar New Year in January, which may distort February data.
A detailed look at published statistics will spoil the joy of strong February growth. For example, one day’s export dropped in almost 12%, while it grew 4,6% in January. February decline was the largest in 3 months.
From territorial point of view, South Korea’s export to China dropped the most – in 6,6%. If we adjust the data to one working day, then the drop was more than one fifth. Recognizable export drop to China began in mid-February. We may expect that March and April statistics will not include positive data. On the other hand, there are chances for optimism, since coronavirus epidemic in China culminated and the situation could soon improve.