South Korea’s Export Growth Slows as External Demand Moderates, Reports Reuters

SEOUL (Reuters) – South Korea’s export growth experienced a slowdown in September, with shipments to the United States showing minimal increase. This development may bolster market anticipations for a potential easing of monetary policy as early as next week.

Exports rose by 7.5% in September compared to the same month last year, down from an 11.2% increase in the previous month, according to the customs service agency’s report on Tuesday. The growth surpassed the analysts’ consensus estimate of 6.5%, although shipments to the U.S. only grew by 3.4% in September after an 11% increase in August.

The latest data comes amid rising expectations that the Bank of Korea might consider cutting its policy interest rates from 3.50%, the highest level since late 2008, at its next rate-setting meeting scheduled for Friday. Concerns over economic growth appear to be overshadowing inflation worries.

Imports rose by 2.2%, falling short of the analysts’ forecast of a 3.0% increase.

Additionally, the preliminary trade surplus expanded to $6.66 billion, up from $3.77 billion the previous month. It’s also important to note that September had fewer working days due to an extended break for the Chuseok thanksgiving holiday.