South Korea's exports showed an unexpectedly strong growth in February on the back of high demand from south-east Asia and the Middle East, easing concerns about the negative effects of the slowing US economy.

Economists said higher-than-expected export growth together with rising inflation would make it difficult for the Bank of Korea to cut interest rates at its meeting this week, although high oil prices and raw material costs continue to pose a threat to growth in Asia's third-largest economy.