Trade surplus slips to €3.45bn

Ireland’s trade surplus was largely unchanged in May at €3.45 billion, despite a 7% rise in exports during the month.

May is the most recent month for which data is available.

However, 2012’s total surplus is now expected to be slightly down on the record levels seen last year.

Latest CSO figures show a combined value of €7.51bn for Irish exports in May — up €518m on the previous month.

However, import value also rose by €515m, or 15%, on the previous month, reaching a total value of just over €4bn.

Chemical products made up the bulk of exports in May, accounting for 60% of total value, while countries within the EU were the main destination for Irish goods — led by Britain, Belgium and Germany.

Despite the stagnation in May’s data, market reaction was generally upbeat. David McNamara of Davy Stockbrokers said that — while marginally down on a year-on-year basis — the recovery in exports (April’s figures showed a 10% monthly fall) in the month is “an encouraging sign”.

“The defensive nature of the Irish export sector — concentrated in IT and pharmaceuticals — appears to be shielding Ireland from the worst of the eurozone recession.”

Merrion Stockbrokers’ economist Alan McQuaid said he expected Ireland to generate a trade surplus of €43bn this year, down on the €44.7bn seen last year.

“As things currently stand, export growth in 2012 is set to be weaker than in 2011. We are looking for a volume increase of 3.8% in goods and services, rising back up again to 4.6% in 2013, all things being equal,” he said.

Noting the need for strong export performance in any economic recovery, Jobs Minister, Richard Bruton said: “The challenge now is to build on these signs of strength. Through the action plan for jobs we are delivering important measures aimed at making it easier for Irish companiesto export more, including the establishment of a potential exporters division in Enterprise Ireland and a number of tax changes to make it easier for companies to locate staff in overseas markets.”