South Korea expects exports to fall in 2023 for the first time in 3 years

South Korean exports are expected to decline in 2023 due to lower IT demand, falling oil prices, and the slow recovery of the global economy. Exports are expected to fall 4.0% in 2023, after rising 7.1% in 2022 to a record $690 billion.

This would be the first annual decline since 2020 when exports from Asia’s fourth-largest economy fell 5.5% due to the COVID-19 pandemic that disrupted global supply chains.

The Korea International Trade Association (KITA) projects that imports will shrink even faster, by 8.0%, in 2023, after rising 19.5% in 2022, due to the gradual decline in oil prices. The annual trade deficit is expected to fall to $13.8 billion next year, down from a full-year deficit of $45 billion in 2022.

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