Monthly rise in value of exports in June as annual figures show decrease

There was a 1% increase in the value of exports over the month of June, but a 4% rise in imports over the same period saw the trade surplus decrease by 2%.

The total value of exports for the month reached €7.15bn, while the value of imports was €4.162bn leaving a surplus for June of €2.989bn.

Comparing Jun 2013 with Jun 2012, the value of exports fell by €703m to €7.36m.

The main drivers were a decrease of €376m, which is 24% of the overall amount in the export of organic chemicals and a further €284m drop in the value of medical and pharmaceutical products. On the other hand, the value of dairy products rose by €55m, according to the CSO.

The EU remains Ireland’s most important trading partner — soaking up 61% of all exports —with the US taking in 21%.

“Overall, Ireland’s goods exports have been sluggish since Dec 2012, with the year-on-year growth rates [and the Q1 National Accounts] reflective of this,” said Investec economist, Emmet Gaffney.

“The preliminary data released today suggests that exports will not present as considerable a drag on annual GDP growth in Q2 as they did in Q1 [when exports fell 4.1% year-on- year, driving GDP 0.9% lower on an annual basis]. Of course, services exports have become the key driver of export growth since overtaking goods exports in size last year and, while we do not have official monthly data on these exports, recent PMI readings have been positive.”

A survey by the International Chamber of Commerce shows an improved outlook for North America and the eurozone.

“While global sentiment has worsened since the last survey, the outlook for our key markets of north America and the eurozone is much more positive. These results are an indication of emerging stabilisation in the eurozone. This is positive news given that these are the most important markets for Irish business,” said Ian Talbot, head of Chambers Ireland.

“Further good news for Ireland is that economic expectations in the eurozone have reached a three year high, boosting the area’s economic climate indicator to its highest level since late 2011. The report attributes this optimism to ‘a lack of bad news’ in the last quarter.

“If we are to sustain this type of momentum, the Government must ensure that Budget 2014 does not increase the cost of business but rather looks to support SMEs, in particular retailers.

“The EU must also take note of the drivers of positive sentiment and the importance of dealing conclusively with issues.”