Trade surplus up 33% to €3.8bn

IRELAND’s trade surplus grew by 33% to €3.83 billion in February on the back of a continuing strong export performance.

The seasonally adjusted trade surplus comfortably topped the forecast €40bn mark in 2010 (eventually coming in at €44bn) and is tipped to pass the €50bn mark this year.

February’s total — up from January’s €2.9bn — benefited from an 11% month-on-month increase in the value of Irish exports, to just over €8bn. Import value, over the same timeframe, fell 3% to €4.26bn.

According to the latest monthly CSO figures, on a year-on-year basis, February’s export value was up by 14%, with the value of imports up by 18% on an annualised basis.

Davy Stockbrokers said yesterday’s figures imply nominal quarter-by-quarter export value growth of around 4.5% for the first three months of this year.

The deputy chief executive of Chambers Ireland, Sean Murphy, said: “These figures show the key role that export-driven companies have in contributing to Ireland’s economic growth and recovery.

“The Government must do all it can in the forthcoming jobs initiative to facilitate the retention and creation of jobs for this growth to continue.”

Jobs Minister Richard Bruton said that it was “re-assuring” that the upward trend in the country’s export performance has been maintained in recent months and added that the new Government’s policy of improving Ireland’s competitiveness continues to be a priority.

“Irish companies are widening their market reach, expanding into new international markets, opening up new business,” Mr Bruton said.

“This is borne out by the statistics showing Irish exports are at an all-time high, which will be key to our economic recovery.”

Recent commentary on Ireland’s export performance — widely judged as the main ray of light for the economy — saw differing opinions.

In its latest quarterly economic commentary, the Central Bank remained relatively bullish on the area, claiming net export growth should modestly outweigh weaknesses in the domestic market this year and grow by 6.1% and 5.9% in 2012.

The Irish Exporters’ Association (IEA), however, warned that the export sector cannot continue to be relied upon to be the sole driver of economic growth.

The IEA said that falling demand, unfavourable currency movements and fuel price rises will damage Irish export competitiveness and exporters will be unlikely to contribute as strongly to the national economy as originally forecast.