IBEC expects exports to grow in second half of year

Business group IBEC has said that the new CSO trade figures highlight the difficult trading environment in which Irish exporters operated in the first quarter of 2010.

The group said it expected to see a return to growth for Irish exports in the second quarter of 2010.

CSO figures published today indicate that exports decreased from €21.9m to €20.7m for the first three months of 2010 compared with the same period in 2009, a decrease of 5%.

IBEC head of trade Pat Ivory said: "Irish exports for the first quarter of 2010 show that exporters continued to experience the challenges posed by the downturn in the global economy. However, exports of medical and pharmaceutical products continued to perform well and increased by 8%, food and drink exports increased by 4.5%.

"Exports to emerging markets show the potential for export growth with exports to Saudi Arabia increasing by 48%.

"Recent favourable developments in the euro exchange rate will more likely be reflected in the second quarter export figures. The depreciation of the euro against the US dollar, which commenced at the beginning of the year, accelerated from April onwards. The weakening of the euro against sterling increased from March onwards.

"Positive currency and competitiveness development, together with stronger demand in a number of export markets, provide a more positive outlook for the future.

"IBEC looks forward to the publication of the Government’s new trade and investment strategy, which must deliver more coodination among government departments and enhance delivery of state support to Irish business and investors in overseas markets."