Deep links to China’s growth help South Korea, Australia ‘odd couple’ weather coronavirus economic storm
- The world’s second-largest economy is the endpoint for more than 25 per cent of Korea’s exports and an extraordinary 43 per cent of Australia’s shipments
- Yet the reliance does not explain all – another common feature is their relative success in controlling the pandemic, and having one of the ‘three Ps’ that typically drive growth
The duo’s connections are not obvious given that Korea is a manufacturing powerhouse with skilled labour as a key strength and Australia extracts vast resource wealth from a continent it has to itself.
The common denominator is their exposure to China, which is the endpoint for more than 25 per cent of Korea’s exports and an extraordinary 43 per cent of Australia’s shipments.
Another common feature is the duo’s relative success in controlling the pandemic. The coronavirus has all but been eliminated in Australia, while Korea has managed to keep total infections so far to around 115,000 – a fraction of what’s seen in similar-sized countries elsewhere.
“They’re an odd couple,” said Saul Eslake, an independent economist. “They’re in the same timezone, but that’s about it. Korea is an importer of commodities and an exporter of increasingly sophisticated manufactured goods. ”