South Korea's tech exports drop marking decrease in global demand
SOUTH Korea's technology exports declined for the first time in more than two years in July, in a sign that global demand is falling as concerns mount about the outlook for the world economy, reports Bloomberg.
Exports of information and communications products edged down 0.7 per cent from a year earlier, after a 6.8 per cent gain in June, according to trade ministry data. Memory chips, produced by firms like Samsung Electronics Co, led the falls with a 13.5 per cent drop, even though overall semiconductor shipments still rose 3.1 per cent.
Technology exports account for almost a third of Korea's overall shipments abroad and the government releases a breakdown following the monthly trade report on the first day of each month. The drop in tech in July contrasts with a 9.4 per cent rise in overall exports in the month.
Demand for semiconductors, computers and communications devices surged during the pandemic as many people around the world shifted to remote work and education to avoid the risk of infection. With the global economy emerging from the grip of the coronavirus, people are now spending more time outdoors and interacting, helping revive the services industry and similar sectors.
In further signs tech demand is slackening, South Korea's smartphone sales dropped 29.2 per cent and exports of computers and auxiliary devices dropped 21.9 per cent in July from a year earlier. Display exports slipped 4.7 per cent, the trade ministry said.
China, which has imposed strict Covid lockdowns on some of its cities this year, imported 8.2 per cent fewer technology devices from South Korea compared with a year earlier. South Korea's tech exports to the U.S. also declined 9.2 per cent, while those to the European Union advanced 12.9 per cent, the trade ministry said.
The customs office separately said Thursday that semiconductor shipments dropped 5.1 per cent from a year earlier in the first 10 days of August. Overall exports increased 8.7 per cent on average.
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