Trade surplus drops by 9% to €3.8bn

A DROP in the value of exports of 4% month-by-month, coupled with a 3% rise in import value, led to a 9% reduction in Ireland’s trade surplus to just over €3.8 billion in August, according to latest figures from the Central Statistics Office (CSO).

The surplus fell from a record high of €4.2bn in July; but was still well ahead of the €3.25bn generated in June and the downward move shouldn’t harm overall annual targets, according to commentators.

“Although some loss of momentum is likely in the merchandise export performance over the next few months, the bottom line is that the export sector offers the one ray of light at the moment in a fairly gloomy economic picture, and will be the key driver of the Irish recovery story. Indeed, there is still every chance that the overall merchandise trade surplus will be over €40bn this year, a new record high,” said Alan McQuaid, chief economist at Bloxham Stockbrokers.