Export woes ‘go beyond pharma’
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.
