Figures show falling trade surplus

IRELAND’S trade surplus fell from €4.0 billion in March to €2.6bn in April, according to seasonally adjusted trade figures from the CSO.

For April exports at €7.5bn were about €200 million below the March figures of €7.7bn, while imports shot up 32% to €4.9bn.

On an unadjusted basis, the value of exports in April 2011 at €7,792m was up 6% when compared with April 2010 and the value of imports (€4,665m) was up 13%

The CSO figures for the first three months of 2011 show exports over the period were in positive territory and will play a significant role in pulling the economy out of the depression that has gripped it over the previous three years when output fell by 14.5%.

At €23.3bn exports were 9% ahead of the first quarter of last year with medical and pharmaceutical products recording significant growth of 18% while chemicals rose by 15%.

Exports to two of key markets were solid with sales to the US up 11% and exports to Britain ahead by 9%. The total value of imports in the first quarter was €12.6bn, up 12% from the same period last year.

Imports from Germany rose 20%, the figures showed while imports from Britain and China were both up by 18%. Economists differed in their interpretation of the figures.

Bloxham chief economist Alan McQuaid described the figures, in a note issued yesterday as “disappointing” while Ronnie O’Toole of NIB, who regards the export role of the multinationals based here as vital to the economy, was more positive.

Exports continue to perform well despite the glitch in the April figures while he described the exports to Britain as both “surprising and encouraging”.

He specifically mentioned the 15% surge in food exports to Britain and suggested the sharp rise in imports might be linked to materials used by exporting firms.

With regard to exports the full picture will not be known until tomorrow when figures for export services will be published, said Mr O’Toole.

“Today’s numbers only relate to goods exports, which only constitute half of all Irish exports. Figures for services exports — which have driven all the growth in exports over the last decade — will be published on Thursday and are expected to show continued growth,” he said.

Chambers Ireland said the provisional figures showing a increase in imports for Quarter 1 2011 could indicate more normal levels of economic activity.

“These figures once again show that while Ireland is growing export markets overseas and maintaining a significant trade surplus, increases in imports underpin arguments that the economy is stabilising,” said Sean Murphy, deputy chief executive of Chambers Ireland.