29 December 2009 09:57 [Source: ICIS news]
SINGAPORE (ICIS news)--?xml:namespace>
The drop in the CA was due to the fall in petrochemical export volumes within the same period as exports to China decreased, said Lee Sung-Kwong, an economist with brokerage house Shinhan Investment Corporation in
The Bank of Korea, the country's central bank, said on Tuesday that the CA surplus in November narrowed slightly to $4.28b (€2.99b) from $4.76b a month earlier.
CA measures an economy’s foreign exchange-related trade and services transactions with the rest of the world.South Korean export volumes are closely interlinked with demand from China, Lee said, adding that a fall in Chinese imports of petrochemicals would "definitely impact numbers". The current account surplus could be attributed to a bump in petrochemical exports in 2009 but it could grow thinner next year as exports to
Yi Eeu Soo, an analyst at brokerage house Samsung Securities, said Asia could face a supply surplus of petrochemicals next year as major players in
“A lot of these plants are already ramping up production or have already ramped it up,” Yi said.
Lee said petrochemical exports shrank 19.1% in the January to November period this year but said that the numbers may still turn positive next year.
“We expect petrochemical exports to grow around 9.5% overall next year. In a best case scenario it might grow over 10%,” he said.
Lee also projects that the South Korean economy could grow by 16.4% next year, with petrochemicals among the major growth sectors alongside semiconductors, ship building, automobile and information technology segments.
($1 = €0.70)
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