Export woes ‘go beyond pharma’

The problems facing the Irish export sector have expanded beyond the pharmaceutical patent cliff according to Davy’s stockbrokers’ analysis of the latest industrial production figures.

Davy’s chief economist Conall MacCoille said the massive decline in output from the modern sector in the last three months of last year was as a result of weak global demand for high-end exports.

“Output in the modern sector is contracting very sharply. Modern sector output fell by an enormous 8.8% in Q4 2012. In part this decline reflects a 6.8% drop in chemicals and pharmaceutical output in Q4. But the data now show a 7.3% fall in computers and optical equipment, and a sharp 11.1% fall in other manufacturing. So weak demand conditions, and not only the impact of the pharmaceutical patent cliff, may explain the fall in modern sector output,” he said.