(Reuters) – SEOUL, July 1 (Reuters) – In June, South Korean exports grew by double digits for the fourth month in a row, albeit at a slower pace, thanks to steady economic recovery in major markets across the world and sustained high demand for memory chips and vehicles. Exports increased 39.7% in June compared to the same month a year ago, reaching $54.80 billion, the third-highest figure on record, according to commerce ministry data released on Thursday. It was the ninth straight month of expansion, above the 33.6 percent average of 17 economist projections in a Reuters survey. In May, exports increased by 45.6 percent, the most since August 1988. “As the coronavirus’s base effect diminishes, the growth rate likely peaked in May… but the value of exports will likely continue to rise in the third quarter,” said Park Sang-hyun, chief economist at Hi Investment & Securities. “We predicted lower Chinese demand as a result of shipping delays and supply-chain interruptions, but the impact is projected to be minimal, as exports to other ASEAN economies improve.” The country’s monthly trade data is keenly monitored because it is the first among major exporting nations to be released and is usually seen as a signal for global trade. Sales of semiconductors, the country’s main export, increased by 34.4 percent for the 12th month in a row, while sales of autos and petrochemical goods increased by 62.5 percent and 68.5 percent, respectively. Exports to China, the United States, and the European Union climbed by 14.3%, 51.9 percent, and 65.3 percent, respectively, while exports to South Korea’s six other main trading partners increased as well. The development of the coronavirus Delta strain and concerns about a sluggish Chinese economic recovery are two new threats to exports, according to analysts. “As China’s manufacturing PMI (buying managers index) signaled decreasing recovery momentum in June, exports to China may slip to single-digit growth… Exports may also be harmed by the Delta virus and related shutdown procedures “Park said. Higher raw material costs, a lack of semiconductors, and a COVID-19 outbreak in important export province Guangdong reduced growth in Chinese manufacturing activity in June to a four-month low, according to data released on Wednesday, amid widespread supply chain disruption in Asia. find out more Meanwhile, South Korean trade statistics released on Thursday showed that imports increased by 40.7 percent in June, exceeding expectations of a 33.0 percent increase. The trade surplus was $4.44 billion, up from $2.94 billion the previous month. The finance ministry upped its 2021 growth prediction to an 11-year high of 4.2 percent earlier this week, with an 18.5 percent increase in exports driving the rise. Joori Roh contributed reporting, and Christopher Cushing edited the piece. The Thomson Reuters Trust Principles are our standards./nRead More