Weak dollar helps pull down exports

EXPORTS fell dramatically in September, down 11% on the €7,407 million Ireland exported in August of this year, pushing the country’s surplus to €2.3 billion, its lowest level since July 2000.

The value of imports in September fell slightly to €4.3bn (from €4.4bn in August). The strong dollar has stopped export growth to Ireland’s largest export market in the US dead in its tracks. Exports to the US fell by 0.6% in the first eight months of the year.

In a statement, the Minister for Trade and Commerce Michael Ahern “reacted favourably” to the trade figures.

He said: “While exports for the month of September 2004 are down 11% on August 2004 figures, overall the figures show an increase in the value of exports of 5% for the January-August 2004 period, relative to January-August 2003.

“The balance of trade continues to be in Ireland’s favour, with figures for September showing a surplus of €2.3bn.”

Mr Ahern said he is very pleased that Irish exporters are continuing to hold their own in a prevailing climate of low growth in Europe and the US.

“I believe that we are well placed to take advantage of any resurgence in the European and US economies in the future.”

Mr Ahern added: “Given the continuing high level of the euro against the US dollar and the pound sterling, this is a very creditable performance by Irish exporters in a very competitive international market.”

The EU again increased its importance as an export market, and it now accounts for 62% of total exports.

Exports to the EU increased by 5.5% in the January-August period, reaching more than €34bn.

Exports to Germany declined slightly, while the proportion of exports going to Britain continued to fall to 17% of the total. An increase of 33% in exports to Belgium was particularly noteworthy.

Goodbody Stockbrokers economist Dermot O’Leary believes the decline in exports to the US as calculated by the CSO may be overstated.

“Analyses of US trade statistics tell a very different story; imports from Ireland are in fact ahead by a very healthy 17.8% year-to-date.

“We suspect that given the incidence of dollar pricing in many of Ireland’s exporting companies, the conversion into euro for data purposes depresses the value data, while not reflecting any competitiveness lost as a result of the euro appreciation.”