Focus should stay on exports, says Forfás

FORFÁS, in its end-of-year review for 2006, has warned of the need to retain a strong focus on export growth in the coming years if Ireland is to sustain its solid economic performance.

Despite a very good year in 2006 — across most sectors of the economy — the national policy and advisory board for industry and science said a greater focus on how we perform on export markets will be crucial to copperfasten our ongoing prosperity.

Statistics show that, since 2000, cumulative growth in exports has fallen behind global trends.

Overall, the future looks good for the economy but in recent years, Forfás said, much of Ireland’s economic growth has been driven by strong consumer and government demand in this country.

International trade has been central to the success story of the Irish economy in the past, the report noted.

In recent years, however, the dynamism, though still very strong — as demonstrated by a growth of 6.2% last year — was displaying an over-reliance on consumers and the government.

This was clearly evidenced by the boom in construction, where employment has doubled over the last eight years, said the report.

Continued economic success however, will be determined by our ability to win contracts in international markets.

“In the long run, continued economic growth depends on the performance of our exporting sector. Ireland is well-placed to meet the challenge of achieving continued export-led growth in the medium term,” according to Martin Cronin, chief executive of Forfás.

Ireland was well placed to meet the challenge of achieving continued export-led growth in the medium term, he added.