South Korean trade slowdown continues – driven by weak air trade
The DHL Global Trade Barometer continues to forecast negative growth for South Korean trade, as the index hits 43, representing a decrease by -2 points compared to the last update in September. The contracting air trade continues to weigh on the South Korean overall trade outlook by further declining -1 point to 39. Ocean trade is also expected to recede further, decreasing -3 points to 45.
The precarious air trade outlook is strongly afflicted by the deceleration in exports across all industries, notably Land Vehicles & Parts. Air imports are also predicted to contract. This is largely caused by the downturn of Machinery Parts, High Technology and Consumer Fashion Goods offsetting the positive growth outlook for Temperature or Climate Controlled Goods.
Ocean trade is affected by the weakening import outlook. Imports of Temperature or Climate Controlled Goods are expected to decline while Basic Raw Materials and Chemicals & Products are also on a downward trajectory. Ocean exports are also expected to be sluggish with the contraction of Land Vehicles & Parts and Chemicals & Products, downplaying the moderate growth outlook for Basic Raw Materials and Machinery Parts.