‘Exports to grow by 7%’

IRISH exports should grow by another 7% this year, helping to boost employment levels in foreign-owned multinational companies based here, according to economist Dr Ronnie O’Toole.

The National Irish Bank chief economist said the performance of goods exports from Ireland has remained strong since the start of this year and new export orders for goods remain “very strong”.

He added that services exports — which account for nearly half of Ireland’s total exports — grew by more than 10% last year and should continue to lead future growth.

He also said that Ireland should post a full-year current account surplus of about 1.5% of GDP this year, which will grow further in the medium term if domestic demand remains constrained and the export sector continues to perform strongly.

According to Dr O’Toole, the continued export growth should also translate into an increase in net employment — in terms of those working with foreign-owned multinationals — although it may not make a huge dent in the country’s high unemployment levels.

Multinational companies based here are expected to create about 6,000 jobs by the end of 2012 — roughly 3,000 this year and the same amount next — purely on the back of export-orientated growth.

“While this increase in employment is welcome, the export sector is not sufficiently labour-intensive to, in itself, make a dent in unemployment.

“However, increased exports can result in higher household incomes and tax revenues, which in time will improve confidence and domestic demand,” Dr O’Toole said.

Yesterday’s NIB outlook also noted that Ireland’s competitiveness levels are improving — with a notable fall in non-wage costs in the past three years.