South Korean exports rebound first time in 20 months, generate hopes of a gradual recovery

Exports in South Korea rebounded for the first time in 20 months during August, generating a ray of hope that the turnaround may call for a gradual recovery in an economy that is highly dependent on foreign trade.

The country’s exports expanded a stronger-than-expected 2.6 percent from a year earlier to USD40.13 billion in August, following the previous month's revised 10.3 percent drop, preliminary data released by the Ministry of Trade, Industries and Energy showed Thursday. The August reading beat the median market forecast for a 1.2 percent gain.

Imports increased 0.1 percent from a year earlier to USD34.82 billion in August, following a revised 13.6 percent decline in the prior month. The market had forecasted a fall of 1.4 percent in August. The trade surplus narrowed to USD5.3 billion in August from a revised USD7.60 billion in July. The August reading was in line with market expectations.

Meanwhile, Korean exports, which account for half of the country's economic growth, have been declining since January 2015 because of sluggish global trade, lower oil prices and a slowdown in China.