Export growth under threat

EXPORT performance, which is generally viewed as the main driver of growth for the economy, is likely to be less impressive than initially forecast.

In its third quarter review published yesterday, the Irish Exporters’ Association (IEA) said that the knock-on effects of the ongoing eurozone debt crisis — chiefly more business uncertainty and weakening in global consumer confidence — hit exports hard in the last three months. This resulted in total Irish export growth of just 1.7%, year-on-year.

The export of manufactured goods fell by 3%, on a year-on-year basis, during the quarter. On the back of those figures, the IEA expects total export growth of 5% for 2011, rather than its original forecast of 7%.