South Korea’s exports dropped by a huge 10.9% in dollar terms between May 2014 and May 2015, the biggest annual decline since the depths of the Great Recession in August 2009.
South Korean exports are a huge deal, and several economists view this figure as a global economic “canary in a coal mine.”
Korean export data comes out very early compared to other major data releases, and Korea counts the huge economies of China, Japan, Europe, and the U.S. as major partners. That makes Korea’s big export-focused industries a good barometer for the rest of the world.
And what about the strong U.S. dollar distorting the actual value of traded Korean goods? Despite confounding factors, Leather pointed out that “although the fall in Korean exports has been exacerbated by the strength of the US dollar, even in local currency terms exports were still down by over 3% last month.”
Full article: This global economic ‘canary in the coal mine’ hasn’t looked this sick since the Great Recession (Financial Post)