Korea’s exports to EU to grow steadily in 2012

South Korean exports to the European Union are expected to rise steadily in 2012, fueled by brisk demand for automobiles and ships, a report said Tuesday.

The Korea International Trade Association report said that fiscal crises in countries such as Greece, Italy, Spain and Ireland will exert negative influence, although the economic bloc as a whole may be able to pull off positive growth.

“Unlike the worldwide financial crisis in 2009, the EU is expected to post growth of about 1 percent,” the association said.

“Because Europe’s economy will grow, South Korea’s exports should continue to do well in the new year.

In the first nine months of this year, exports to the EU jumped 11.5 percent on-year to $46.61 billion, making it the third-largest overseas market for locally made goods. Last year exports to the region totaled $53.51 billion for a 14.8 percent gain from 2009.

KITA said that ship exports should edge upwards because vessels ordered in the past will be delivered to European shipping lines.

It added that despite the drop in overall demand for new cars, South Korean carmakers may still sell more vehicles thanks to their price competitiveness and good fuel economy.

Outbound shipments of refined petroleum products should increase but predicted demand for information technology, consumer electronics and telecommunications products could fall as slower growth hurts consumer sentiment.

The rise in petroleum products will be helped by the bilateral free trade agreement between South Korea and the EU that went into effect last July.

The international trade organization added that there is a need to keep close tabs on developments in the EU that could affect global economic growth. 

(Yonhap News)