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Bullish Signals Out of South Korea

Strong demand for South Korean exports signals an improvement for the U.S. and ASEAN investment cycles, as exports grew to a 15-month high in April.

Consumer spending is obviously gathering pace in the United States and ASEAN nations, but China is definitely a worry because a slowdown there would put the brakes on a much-needed sustained global recovery.

south korea export trading

South Korea is the first major economy to report trade figures each month. Moreover, it’s the 7th largest trade exporter, making this indicator one of the most important for judging the health of the world’s economy.

Shipments to the United States are up nicely, to 19.3%, suggesting that export-reliant countries are reaping the rewards of recoveries in developed nations.

This, together with Taiwan’s surge in March shipments, is providing analysts and traders the indicators they need to have more faith that the recovery is sustainable.

The South Korean Trade Ministry says that this surge was led by automobiles, mobile phone handsets, and memory chips.