South Korea grapples with weaker-than-expected exports
December decline breaks a three-month rally.
According to BBVA, exports in South Korea declined in December for the first time in three months by -5.5% y/y (consensus: +0.8%) from a 3.8% rise one month earlier, according to data released yesterday.
"Authorities pointed to seasonal factors as the cause of the weak reading in December's exports. Korean authorities recently took measures to curb won appreciation, which is probably weighing on exports performance. In a separate report, inflation in Korea edged down to 1.5% y/y from 1.6% y/y in November, giving room for the Bank of Korea to ease monetary policy in its next meeting on January 11," added BBVA.