Exports reach 10-year high of €92bn

The value of Irish goods exports hit a 10-year high of €92bn, in 2012, according to provisional end-of-year data from the CSO.

The figure also marks a near 1% increase on 2011’s total value of just under €91.3bn. Last year’s 1.5% increase in import value — to just over €49bn — resulted in a slender 0.2% rise in Ireland’s overall annual trade surplus for 2012, to €42.98bn.

However, the new figures also showed a fall in export value — from €8.1bn to €6.8bn — and a decline in the seasonally adjusted trade surplus, from €4.3bn to just over €3bn between November and December.

Despite no fresh data on services exports and no real indication of volume growth from yesterday’s CSO release, the Government has wholeheartedly welcomed the figures.

According to Enterprise Minister Richard Bruton: “A strong export performance will be crucial to delivering the economic recovery we are all working so hard to achieve. Conditions in international markets remain difficult, but today’s record figures show that Irish exporters are performing extraordinarily well in a tough environment. Other recent signs, including the major jobs announcements we have seen recently, show that there are real reasons for optimism about the transition that is occurring in our economy. The challenge now is to build on these strengths.”

Latest available figures for services exports show a rise of over 11% for the first nine months of 2012, leading to expectations of a significant overall increase in last year’s export performance.

The figures also identify the US, Britain, Belgium and Germany as Ireland’s main export markets, although exports across the Atlantic fell 16% last year.

Nevertheless, Philip O’Sullivan, chief economist with NCB Stockbrokers, said Ireland’s ability to produce such export figures, as hinted at yesterday, marks “a very creditable performance”.

However, Alan McQuaid of Merrion Capital said the December aspect of the figures was “a lot weaker” than expected, with that month’s trade surplus being the second lowest of last year.

He did, however, suggest volume increases in services exports during the first three quarters of 2012 should prove a saving factor.

“Irish export growth, in 2012, looks set to be weaker than in 2011. We are forecasting a volume rise of 2.9% in goods and services, pushing back up again to 4% in 2013 and 5.5% in 2014, all things being equal; with the services side providing the main positive momentum.”

Mr McQuaid also noted that while the expiry of certain drug patents has begun to negatively impact pharmaceutical export performance; the weakness in that sector is being offset by the strength of other areas, most notably organic chemicals.