Exports the only ‘bright spot’ in current climate

SUSTAINING expansion of exports and shifting growth towards the indigenous sector and away from the reliance on multi-nationals is the “sole path” to sustainable future economic growth.

That is according to economist Constantin Gurdgiev, who said that as the current economic climate continues to drive down domestic investment and demand, Irish exports remain the only bright spot.

“In this context, recent successes in opening new markets for Irish exporters of goods and services in the BRICs (Brazil, Russia, India and China) is a testament to the Irish exporters’ resilience and innovative capacity, and a positive sign for the future.

“With a strong base of skilled indigenous exporters, growth of domestic exports can be expected to yield greater returns to the economy at large, resulting in job creation, entrepreneurship and substantial tax revenues.”

Dr Gurdgiev was speaking at an Ulster Bank and Enterprise Ireland seminar in Cork yesterday on helping businesses find new markets.

Companies were told that Central Europe, Russia and the Gulf are high growth markets for Irish firms, especially SMEs who need to grow while domestic demand remains weak.

The seminar was attended by more than 130 business professionals looking for information on international trading and entering new markets.

CSO statistics for the first five months of 2011 show an overall worldwide average increase in Irish exports of almost 6%, with Russia alone recording an increase of over 50% and Romania 30%.

The Czech Republic, which is up 95%, illustrate that these markets offer high potential to Irish exporters, said Pat Maher, Enterprise Ireland’s regional director for Northern, Eastern and Central Europe

He said: “Irish companies in traditional sectors such as construction, waste management, agricultural machinery and automotive components are doing just as well as those in newer sectors such as telecommunications, banking and compliance software.

“Smaller companies planning to target these markets need to build a strategy based on sound advice and research in order to open up opportunities available in these markets,” he said.