Irish exports balloon to €161bn in 2020 thanks to, rather than despite, Covid-19 crisis

A cargo ship, the S Kuznetsov, at anchor off Myrtleville this morning waiting to enter the Port of Cork. Picture: David Creedon / Anzenberger

Irish exports ballooned by 5.4% last year to reach a new record of almost €161bn thanks to, rather than despite, the Covid-19 crisis as foreign-owned pharma and medical device makers increased sales during the pandemic.  

The bounty has helped to boost the profitability base of multinationals based here and, in turn, lifted the amount in taxes the Government collects in corporation tax revenues, helping to offset much of the major declines in spending taxes such as Vat. 

Economists are wondering if the trends can last, however.

Medical and pharma play starring roles

According to new CSO figures, the value of Irish goods exported last year rose to €160.8bn, up from €152.5bn in 2019, with pharma and medical device sales playing starring roles. 

At €62bn, medical and pharma products accounted for almost 40% of all goods by value for export last year, an increase of 25% in the one year. 

A breakdown by type of exports shows that exports of chemical exports soared by almost 14% from 2019, suggesting that the products were destined for other manufacturing plants in Europe and the US. 

Destination: Belgium

By destination, there were exports of all types of products of almost €17.9bn to Belgium, which has a large number of pharma plants, and €17.5bn to Germany last year. With Britain still inside the EU in 2020, total exports to the whole region amounted to over €63.8bn, with the US accounting for €49.8bn, or over 30% of all exports.

Britain accounted for 8% of all exports, with the value of goods sold across the Irish Sea falling last year to €12.4bn, down by almost €1.2bn from 2019. 

Exports to Britain have in the past been very important for Irish-owned firms such as agri-foods and employ a disproportionately large number of people. Imports from Britain also fell, but by a smaller rate, to account for a goods trade deficit of €5.4bn.