SEOUL- Robust demand for South Korean chips helped Asia’s fourth-largest economy post export growth for a sixth consecutive month in March, albeit at a pace slightly slower than expected, pointing to continued recovery in the global economy.
Exports rose 3.1 percent from the same period a year prior to $56.56 billion, missing a gain of 5.2 percent tipped in a Reuters poll of economists.
That followed a 4.8 percent increase a month earlier, hinting at recovery in global economic momentum as South Korea’s dominance in semiconductors and other high-tech goods makes the country a barometer for global demand.
Imports declined 12.3 percent in March from the same month a year earlier to $52.28 billion, deeper than a 8.1 percent fall seen in the poll but easing slightly from a 13.1 percent drop in February.
Overseas sales of chips grew for a fifth successive month, rising 35.7 percent and logging the best performance by value in two years, trade ministry data showed.
Increasing demand for artificial intelligence-related memory is driving semiconductor sales, as the world’s two biggest makers of memory chips – Samsung Electronics005930.KS and – flagged improving chip demand for the year ahead.
Exports of computers and mobile communication devices increased 24.5 percent and 5.5 percent respectively, while that for cars declined 5 percent .
By destination, exports to China rose 0.4 percent from a year earlier and those to the United States increased 11.6 percent .
Separate data released on Monday however showed weaker manufacturing activity in March as slowing domestic demand offset robust overseas sales.
The purchasing managers index stood at 49.8 in March on a seasonally adjusted basis, from 50.7 in February, the data showed.
Firms surveyed for the index mentioned “a muted domestic economy holding back production and sales” due to high borrowing costs.
