South Korea's exports to China are forecast to decline for the first time in five years this year as a cooling in the world's second-largest economy may continue, data showed on Sunday.
Shipments to China, the world's single largest importer of South Korean products, slipped 0.5 percent on-year through November this year, according to the data compiled by the Ministry of Trade, Industry and Energy.
If the trend continues, the country's exports to China on an annual basis may decline for the first time this year since the global financial crisis in 2009, market watchers said.
Last month, exports to China dropped 3.2 percent on-year, marking a turnaround from a 3.5 percent on-year gain in the previous month.
In contrast, exports to the United States jumped 20.8 percent on-year last month, while shipments to European Union countries shrank 6.7 percent, according to the data.
China's economy is forecast to suffer its worst slowdown in 24 years this year with annual growth projected at 7.4 percent. Its economic growth slowed to 7.3 percent in the third quarter, the weakest pace since the 2009 financial crisis.
"Exports to China may not be good next year also as the neighboring country's product quality has improved sharply," said Lee Bong-gul, an analyst at the Korea International Trade Association (KITA). "Their demand for South Korean goods such as mobile phones and petrochemicals may remain weak."
Analysts said demand for South Korean consumer goods will remain solid, however, which means local exporters should realign their export portfolio in response to China's efforts to boost domestic demand. (Yonhap)
