South Korea has been recording the fastest growth of exports since 32 years

South Korea registered the sharpest growth and expansion in their exports in over 32 years in the month of May. It marks yet another flourishing month of shipments which can be attributed to rising consumer demand around the world as the economies are expected to reopen.

Since, South Korea happens to be an economy which has been dominated by chipsets and car manufacturing, the growth in these two sectors have been responsible for the surge in car and chipset shipments thereby helping exports to register a 45.6% rise in exports from South Korea in comparison to last year. The government data declared on Tuesday, states that the posted export figures showcase the fastest growth since August 1988 and the country is looking forward to continue this expansion for a consecutive seventh month.

A rising consumer spending in the U.S. translates into demand for Korean products which is expected to remain strong. The expectations and speculations across investors is suggesting a similar trade data results from China and Japan. The South Korean port of Pusan has been confronting port congestion amid these rising exports that the Pusan Newport International Terminal has started accepting container boxes only if the delivery is due in five days, which registers a decline from seven previously.

The rate of shipments is expected to get slow growth as base effects from the COVID-19 are expected to fade. The economists are speculating bullish response for the outlook of exports. Additionally, chipset exports soared 24.6% on-year, which is registering growth for an 11th month in a row, whereas the car shipments rose to 93.8%. Petrochemical products exports rose by 95.0% from 2020. The average exports per working day registered a growth of 49% in the month of May, which has been outperforming with a 29.6% increase in April when the shipments had recorded a gain of 41.2%.