Semiconductors, Ships, and Petrochemicals Leading This Year’s Anticipated Three Percent Export Growth S. Korea’s exports in 2019, the trend is expected to be sluggish and within a narrow range when compared to last year. This is due to a series of negative factors including trade conflict between the United States and China, a rise in interest rates by the United States, the possibility of financial crises in developing nations, etc., in spite of the gradual growth trend of global economy and a steady global demand on IT.
The nation’s exports and imports in 2019 are expected to rise by 0.3 percent to US$625 billion and 3.7 percent rise to US$557 billion, from last year, respectively, accomplishing US$1 trillion in trade for three years in a row.
By item, exports of semiconductors are expected to reach US$130 billion, the nation’s first among single items, spurred by the demand increase for the servers of data centers and the new market growth including artificial intelligence (AI), Internet of Things (IoT), and self-driving automobiles.
The export increase rate of semiconductors is, however, expected to be much more sluggish, from the thirties last year to five percent this year, caused by the decrease of semiconductors’ unit costs. The export increase rate of ships is predicted to reach 10 percent thanks to the delivery of orders received over the past two years and the base effect. Petrochemicals are anticipated to see a 5.2 percent increase in exports with the help of the increase of export volume by the operation of the domestic new facilities.
Moreover, general machinery and computers are also expected to enjoy increased export volume, due to the investment increase in infrastructure in major nations including China, the United States, and India and the increased demand for SSD used in cloud servers for enterprises and personal PCs, respectively.
For automobiles, exports are expected to reach the record levels of last year, due to the potential financial crises in developing nations affected by the rise in interest rates, in spite of some positive factors including the release of some new car models, the increased demand for some eco-friendly cars and SUVs. The export of display is expected to decrease to 2.2 percent, caused by the decrease in price affected by the oversupply of liquid crystal display (LCD) taking 60 percent of the whole, despite the anticipated upswing in the demand for organic light emitting diode (OLED).
For wireless communication devices and home appliances, the decrease trend of exports is expected to continue. As for steel, the decreased trend is expected to expand, caused by some factors including the restriction of exports by the United States. | Blog Magazine of korean-machinery, brands and Goods