Data for South Korea suggests improving outlook

SEOUL – Korean exports saw a small gain in February, boosted by strong sales of mobile communication devices, which surged 34.5% y/y. Exports of semiconductors and cars also grew strongly by 14.5% and 9.1% respectively. However, petroleum products and petrochemicals contracted 15.4% and 6.8%, dragging on exports.

By country, exports to the US contracted 6.7%, while exports to the EU rose 10.6% and exports to China increased 3.8%. ANZ Bank says poor exports to the US could possibly be due to the severe weather that might have disrupted the global supply chain.
Domestically, recent data flows continue to support the case of a gradual economic recovery. ANZ is maintaining its forecast that Korea’s GDP will grow 3.7% in 2014, and by 3.4% in 2015. www.live.anz.com (ATI).