Growing exports key for firms seeking to expand
The patent issue has had a dramatic impact on the value of chemical and pharmaceutical exports over the past couple of years and from month to month one never knows what the number is going to be like. This issue will eventually work its way through the system and when it does it will become very apparent that the Irish export model is purring very smoothly despite serious issues in some of our main export markets, particularly in the eurozone.
Last year the total value of exports out of the country reached €184bn, which represented growth of just 0.9% on 2012 levels. Merchandise exports, or physical stuff we sell, declined by 5.4%, while service exports expanded by 7.9%. The sharp decline in merchandise sales was primarily due to the patent issue, but its real economic impact in terms of important variables such as employment was pretty modest, because the business models of the affected companies had been adjusted in advance and new investments and new business activities were developed. Other export sectors such as food did very well, expanding by over 10%.