2010 trade surplus to top €45bn

IRELAND’S overall trade surplus for 2010 is expected to top €45 billion — with that figure potentially rising to nearly €50bn this year — following a strong close to the year, for export performance.

Latest preliminary monthly figures from the CSO — published yesterday — show that the value of Irish exports grew by 21%, on a year-on-year basis, inDecember, to €7.24bn. The corresponding value of imports was up by 9% to just over €4bn.

On a month-by-month basis, December saw a flat export performance, while imports rose by 12%. This led to a 10% fall in Ireland’s monthly seasonally adjusted trade surplus, to €3.74bn — the first time since September this figure dipped below €4bn.

The full trade surplus figure for 2010 will only be known when the CSO publishes its next external trade figures in March, but recent Eurostat figures show that we passed the €40bn mark by the end of November. Economic commentators are now forecasting a 2010 full-year surplus of around €45bn.

“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 in the short-term. We think 2011 will be another very good year for Irish exports, with the merchandise trade surplus forecast to rise to close to €50bn,” said Alan McQuaid, chief economist, Bloxham Stockbrokers.

Chambers Ireland chimed in by saying the latest trends continue to show how key a role export-driven companies have in contributing to the economy.

“Growing exports is a national priority and the new Government must do all it can to help companies do this in order to achieve national growth objectives. Central to this must be the introduction of job creation and job retention policies that will help facilitate their growth, and ultimately get Ireland’s economy back on track,” noted Chambers head, Ian Talbot.

Irish exports grew by 6%, to €82.8bn between January and November last year. Employers’ body, IBEC, said that while Ireland’s export-led recovery remains on track, the incoming Government “must act quickly in its first 100 days to address competitiveness issues for businesses focused on both the domestic economy and export markets.”