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Exports anticipated to fall as growth rates dwindle
With concerns mounting over an economic slowdown in the second half of the year, financial indicators are pointing to the nation’s exports losing their momentum in coming months, affected by a sluggish global economy. According to economic indicators compiled by the Organization for Economic Cooperation and Development (OECD), the world’s leading countries are showing signs of a slowdown. The organization’s measure of the world’s future economic outlook did not change from April to May, meaning that the global economy may have reached its turning point and is likely to grow at a slower rate in the months to come.The gloomy outlook for the world’s major countries cast a pall over South Korea, which depends upon exports for about 40 percent of its economy. Experts say that South Korea needs to focus more on June’s figures, whose scores represented the average of leading indicators for the past 11 months. In this way, they may help to paint a much clearer picture of where the global economy will move down the road. According to government data, South Korea’s June exports amounted to a record 28.27 billion USD, up 19.2 percent from a month earlier. The figures seemed slated to continue a yearly trend of two-digit growth in exports. OECD member countries recorded a growth rate of 3.4 percent in May, down from 3.6 percent a month earlier, showing signs that that group of nations has already reached its apex for this economic cycle. The corresponding figure for the United States, the world’s largest economy, which posted a 3.7 percent growth rate in March, dropped to 3.4 percent and 2.6 percent in April and May, respectively. "The direction of the world economy is getting clearer. What is important is not the semi-annual economic trends for South Korea but trends for the economy through next year," an analyst said.
