Exports drive record current account surplus in last quarter of 2010

IRELAND achieved its highest ever quarterly current account surplus during the last three months of 2010, thanks mainly to a near €7 billion increase in the value of exports last year.

The country’s current account balance — which moved back into the black in the third quarter of last year, when a surplus of €255m was recorded — rocketed to just under €1.4bn compared to a surplus of just €17m in the fourth quarter of 2009.

The latest surplus figure, reported in the balance of international payments index from the Central Statistics Office (CSO), also managed to lower Ireland’s full year current account deficit for 2010 to just over €1.1bn.

This overall deficit was down from the 2009 deficit of €4.85bn and ranks as Ireland’s lowest since 2004.

Yesterday’s figures also showed that merchandise exports fell by over €1.5bn, to just over €20bn, on a quarter-by-quarter basis during the last quarter of the year; while services exports increased by over €1bn to €19.72bn (boosted by computer services).

“For the year 2010 the merchandise surplus of €37.15bn was €4.8bn higher than in 2009, due to an increase in exports of €6.8bn, which was partially offset by an increase of €2bn in imports. The services deficit of €8.54bn was €100m higher than in 2009,” the CSO added.

Direct investment abroad increased during the last quarter of 2010 — up by over €5bn. Inward foreign direct investment showed a net inflow of €15.9bn.