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South Korean trade outlook remains stable despite short-term trade volatility

South Korean trade outlook remains stable despite short-term trade volatility

A truck drives between shipping containers at a container terminal at Incheon port in Incheon, South Korea, May 26, 2016.  REUTERS/Kim Hong-Ji/File Photo

South Korea’s ocean trade is set to surpass its air trade over the next three months, keeping the country’s trade volumes stable amidst short-term volatility, according to data from the DHL Global Trade Barometer released by DHL, the world’s leading logistics company.

The DHL Global Trade Barometer, an early indicator of global trade developments calculated using Artificial Intelligence and Big Data, revealed that South Korea’s trade outlook is set to decelerate to 49 points, below the threshold of 50 which indicates growth. Air imports, however, will be sustained by domestic demand for Machinery Parts and Temperature or Climate Controlled Goods, while air exports will maintain a strong foundation thanks to overseas demand for Basic Raw Materials. The outlook is more positive for ocean shipments, where trade in Basic Raw Materials remains robust while imports of Personal & Household Goods are forecasted to flourish.

The Barometer’s results also suggest that global trade growth looks set to slow down over the next three months, signaling only a slight growth. However, the top three nations with the highest indexes are all in Asia, namely India, Japan, and China. Indices for all seven countries that constitute the Global Trade Barometer index — including the US, UK and Germany — are above 50 points except for South Korea. In the Global Trade Barometer methodology, an index value above 50 indicates positive growth, while values below 50 indicate contraction.