Exports on target for 9% growth

IRELAND’S export market remains on course for above average growth of around 9% this year, on the back of a strong first-half showing — especially in the food sector.

The value of Irish exports grew by nearly 8% — or €6 billion — during the first half of the year. This was in line with Irish Exporters’ Association (IEA) projections, and the organisation is forecasting a 9.1% increase in full-year export value for 2011 to €177.5bn. This would represent a rate of growth “substantially higher” than the global average, according to the IEA.

The growth was driven by a continued surge in agri-food exports, which grew by 14.2%, much of this coming from sales in the eurozone and to Asia.

“We’re confident that the export growth rates expected in Ireland will significantly exceed the global average in 2011,” said IEA chief executive, John Whelan yesterday at the publication of the association’s mid-year review.

The strong first-half showing was achieved despite a large number of international economic shocks — such as the unrest in the Middle East, the Japanese earthquake, the sovereign debt crises and rising oil prices — and the remainder of the year will remain challenging as the eurozone debt crisis rumbles on.

Mr Whelan said that national debt problems may impact on Ireland’s continued export growth, but added that the effects should be offset by the continued rapid growth being seen in emerging economies.

That said, however, Irish exports to traditional markets grew strongly during the first half of this year — particularly to the US, Germany, France and Italy. Exports to Britain rose by a more sluggish level of just 2%, but there was an unexpected fall — of 1% — in exports to China; the first fall in outbound trade with that country in more than a decade.

The first-half performance included a 7.4% increase in merchandise exports and an 8.3% improvement in services exports. The full-year forecast, from the IEA, factors in a 10% growth in merchandise exports and an 8% rise in services exports.

The IEA also said yesterday that it was pleased with the role the Government has made in restoring confidence, adding that there is strong evidence that Foreign Direct Investment (FDI) hasn’t been affected by the negative sovereign debt issues.