Contract manufacturing abroad swells Ireland’s trade figures

Contract manufacturing inflated Ireland’s trade figures massively last year in swelling sector growth far above actual levels, according to Davy Stockbrokers.

The practice, which sees manufacturing co-ordinated by Irish-based firms but which takes place elsewhere being booked on Irish national accounts, came into focus last year with the Financial Advisory Council indicating it accounted for more than 40% of GDP growth in the first half of the year.

Headline growth figures showed that Irish exports grew by 12.2% in 2014.