According to Mitul Kotecha, senior emerging markets strategist at TD Securities, recent data have revealed a worsening in Korea’s economy, with exports falling sharply, especially in the tech sector, leading to official revisions lower to growth and inflation forecasts today.
Key Quotes
“The intensification of a trade spat with Japan could lead to more pressure, especially on an already weak tech sector while also impacting global supply chains.”
“Pressure on BoK to ease policy has grown, with a cut on 18 July increasingly likely. KRW is also likely to remain vulnerable, with a move to 1200 versus USD on the cards over coming weeks.”
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