S. Korea's exports estimated to soar 41% in April

South Korea's exports are forecast to reach US$51.1 billion in April, advancing 41 percent from a year earlier, on the back of a base effect, and demand of chips and autos, according to a Yonhap Infomax poll on five local brokerage houses.

The estimated increase would mark the sixth straight month of gains and the fastest on-year growth in over 10 years.

South Korea's exports soared 45.4 percent on-year in the April 1 to 20 period, with vehicles gaining 54.9 percent and semiconductors increasing 38.2 percent. It was preceded by a 12.7 percent on-year first-quarter growth to $146.7 billion.

Meanwhile, the country's imports are estimated to soar 28.8 percent on year to $48.9 billion, potentially creating a $2.2 billion trade surplus.

The robust outlook is attributable to global economic recovery and the base effect from last April when exports dropped 24 percent.

Jun Kyu-yeon, a Hana Financial Investment economist, said that even if the base effect is excluded, the global economic rebound and export price increases should propel exports for April.

Exports, which account for half of South Korea's economy, rose 16.6 percent on-year in March to mark the fifth consecutive month of gains.

Last year, South Korea's exports fell 5.4 percent on-year to $512.8 billion due to the pandemic.

In February, the Bank of Korea revised up its 2021 growth forecast of exports to 7.1 percent.