□ On July 11, the Overseas Economics Research Institute (keri.koreaxim.go.kr) of Korea Eximbank forecast a 23% export growth rate for the third quarter of 2011 (year on year), thank to stable increases in exports.

□ According to the 2011 3Q Export Forecast released by Korea Eximbank, export rates are expected to continuously increase due to solid growth in developing countries outweighing sluggish economic growth in developed countries such as the US, Japan, and European countries.

○ According to Korea Eximbank, “Although the US is undergoing a soft patch and the EU is facing economic instability, the Leading Export Index*, the standard index of future economic performance in exports, recorded continuous growth over the last three quarters (0.7% increase from the previous quarter) thanks to stabilized investment and consumption in China and India, economic development by resource rich countries such as Russia, price competitiveness of Korean companies through cost reductions, and increased petroleum exports such as refined oil as a result of higher oil prices and substitution for Japan.”

* The Leading Export Index is a comprehensive economic index that predicts the direction of Korea’s export industry by taking into consideration the variables influencing Korea’s export volume such as economic conditions of Korea’s major export partners, export unit prices, price competitiveness of domestic products, and export prospects of industries and corporations in Korea.

□ Korea Eximbank stated that it will actively address the difficulties of Korean export companies resulting from the unstable export conditions of external economic conditions, such as the deepening recession in the US and increasing risks from a potential financial crisis in the EU, etc.In addition, the bank will strive to support expansion efforts by Korean export companies.