IBEC: Trade figures signal return to exprt growth later this year

Employers' group IBEC today said that new CSO trade figures highlight the very challenging trading environment in which Irish exporters are operating, but said that 2010 should see a return to export growth.

CSO figures, published today, indicate that Ireland's trade surplus for November 2009 fell to €2.66bn, the second monthly decline in a row.

Seasonally adjusted exports fell by 1% in November 2009 relative to the previous month, while imports rose by 6%.

This preliminary November 2009 data, when compared with November 2008, shows a drop in both machinery and chemicals exports to most destinations, with the exception of chemical exports to the UK.

Detailed figures for the January - October 2009 period show that exports were down 2% to €70.9bn and imports were down 24% to €37.3bn.

IBEC head of trade and transport policy Pat Ivory said: "These figures indicate the scale of the challenge that has faced Irish exporters, particularly when trading during last year's period of substantial sterling weakness against the euro. Exports to Britain in the first ten months of 2009 fell by 16% and exports to Northern Ireland were down 21%.

"The recent strengthening of sterling against the euro, along with an improvement in wage competitiveness of around 5% compared to European competitors, may ease trading difficulties somewhat. Although exchange rate pressures remain much more challenging than prior to the current economic crisis.

"Positive currency and competitiveness development, together with stronger demand in a number of export markets, should contribute to a return to export growth this year."