"China Reopening Expands South Korea's Exports by 0.55%P"

Martial Arts "Actively Utilize Opportunities to Expand Exports"

[Asia Economy Reporter Moon Chaeseok] South Korea's exports, which recorded a historic monthly trade deficit of $12.69 billion (approximately 15.6594 trillion KRW at the time of calculation) last month, are expected to improve due to China's reopening (resumption of economic activities), according to an analysis. This is based on the assumption that China's economy will fully recover starting from the second quarter.

On the 12th, the Korea International Trade Association's Institute for International Trade and Commerce announced the publication of a report titled "Analysis of the Impact on Our Economy Due to China's Reopening," which contains these details.

On the 18th of last month, ahead of the Chinese New Year (Chunje, Lunar New Year), the largest holiday in China, the scene at Shanghai Hongqiao Station. [Image source=Reuters Yonhap News]

China shifted to a "With Corona" (gradual return to normal life) system in December last year. Various institutions forecast China's economic growth rate this year to average 5.1%, an increase of 2.1 percentage points from last year's 3%.

It is expected that if China's economy recovers from the second quarter, the growth rate for the second quarter will reach 6.9%, rising 4.3 percentage points from 2.6% in the first quarter.

In this scenario, the report analyzed that South Korea's export volume would increase by 0.55 percentage points, which is 31% of last year's export volume growth rate of 1.8%. The report also analyzed that the real Gross Domestic Product (GDP) would increase by 0.16 percentage points, which is 10% of this year's South Korean growth forecast of 1.6 to 1.7%.

Kang Naeyeong, a senior researcher at the Korea International Trade Association, advised, "It is necessary to actively utilize the opportunity to expand exports by targeting the Chinese domestic market."

He added, "To increase exports of consumer goods (cosmetics, home appliances, etc.), intermediate goods (semiconductors, petrochemicals, auto parts, etc.), and capital goods (machine tools, etc.), participation in exhibitions to enhance Korea's image and utilization of the Regional Comprehensive Economic Partnership (RCEP) are also necessary."

This content was produced with the assistance of AI translation services.