SOUTH KOREA EXPORTS & GLOBAL GROWTH: THE AMAZING CORRELATION ! (Leading indicator)

Exports from South Korea have been considered as a leading indicator of global profitability.

The chart below presents the 25 year record of South Korean export growth's relation with the EPS (earnings per share) growth of global listed companies over the following 12 months.

The same is being factored by the market anticipating a slowdown in global growth as South Korean exports turned negative in mid 2018.

Last instance of negative export growth in South Korea in mid 2015 anticipated correction in global risky assets but the artificial interventions from reserve banks prevented a global correction.