More Machines
Both the production and export of the machinery industry (except shipbuilding) during the first half of this year increased only a bit due to low demand from emerging countries. However, both production and export will be revitalized, thanks to the economic recovery of advanced countries including the US. Especially, exports of construction and mining machinery, machine tools, and automobiles are expected to improve a lot.
According to the Korea Association of Machinery Industry on July 29, the production and export of the machinery industry (except shipbuilding) during the first half of this year increased only a bit due to low demand from emerging countries, even though the depreciation of Japanese yen has slowed down and the economies of advanced countries have improved slowly. Production, exports, imports, and trade surplus of the top five machinery industries (metal products, general machinery, electric machinery, precision machinery, and transport machinery) during the first half of this year was 226.6 trillion won (US$221.1 billion), 92.93 billion won (US$90.69 million), 49.34 billion won (US$48.2 million), and 43.59 billion won (US$42.53 million), respectively.
Thanks to the constant economic recovery of advanced countries, including the U.S. and Europe, production and exports are expected to grow. The appreciation of the Korean won and slowdown of the Chinese economy could be barriers, though. The Korea Association of Machinery Industry projected that production, exports, imports, and the trade surplus of the top five machinery industries during the second half of this year will reach 231 trillion won (US$225 billion), 92.55 billion won (US$90.47 million), 55.52 billion won (US$54.27 million), and 39.73 billion won (US$38.84 million), respectively.
Accordingly, the production, exports, imports, and trade surplus of the top five machinery industries for this year total are expected to increase by 2.7 percent all around. An official at the Korea Association of Machinery Industry explained, “Exports to China were sluggish so far, but exports to the US and Europe are increasing. Exports to the Middle East will also grow during the second half due to the base effects. As the manufacturing Purchasing Managers' Index of China recorded 51.0 last June, exceeding the standard of 50, exports to China look positive as well during the second half.”
The Korea Association of Machinery Industry forecasted that construction and mining machinery, machine tools, molds, bearings, gas combustors, tools, electric machinery, and automobiles look promising.