Korea Exports Fall for 19th Month as Policy Makers Await Rebound

South Korean exports fell more than economists expected in July, underscoring the difficulties policy makers face, even as they look to use monetary and fiscal policies to boost growth. The government is hoping to see exports rebound in the second half of 2016.

South Korea generates about half of its gross domestic product from overseas sales. The prolonged contraction in exports is a source of concern, especially as domestic demand is also at risk due to corporate restructuring and an anti-corruption law due to start from September. The trade ministry expects global trade will improve in the second half of the year, although an export recovery is uncertain as emerging economies remain weak and there will be effects from Brexit. August performance will be key to gauging whether overseas sales will rebound, Trade Minister Joo Hyung Hwan said last week.