Irish exports down €1.6bn in first eight months of 2021

However, exports to Britain remain resilient, and EU countries and the US remain Ireland's biggest export markets

The value of Irish exports fell by 2%, year-on-year, in the first eight months of this year, latest CSO figures show.

Export value stood at just under €107bn for the period between the start of January and the end of August. That figure was €1.64bn — or 2% — down on the same period last year.

However, Irish exports to Britain remained resilient in the first eight months despite various Brexit issues and complications and Irish exporters beginning to spread their geographical nets wider.

Despite a 7% year-on-year drop in August — to €978m — the value of Irish exports to Britain increased by 21% to €9.2bn, year-on-year, in the eight months to the end of August.

Tech exports increased 39%

On an overall basis, the preliminary CSO data show that the value of Irish exports totalled €13.9bn in August, up 5% on July. The value for August grew by €160m when measured on a year-on-year basis. That was despite a 9% — or €481m — year-on-year drop in pharmaceutical exports to €4.9bn.

Technology exports — primarily electrical machinery, appliances and parts — grew 39% to just over €1bn in August, compared to the same month last year.

A 2% increase in annualised import value — to €8.2bn — resulted in Ireland’s trade surplus increasing by 10% to just under €5.7bn in August, the CSO said.

EU and US are Ireland's biggest export markets

The EU remains Ireland’s chief export location, accounting for nearly €5bn — or 37% — of total goods exported from here in August. Britain, by comparison, was the destination for 18%. The US was the main non-EU destination, accounting for €4.1bn, or 32%, of total Irish exports in August, according to the CSO figures.

The aftermath of Brexit has seen significant increases in cross-border trade levels on the island of Ireland. The latest CSO data show a 47% year-on-year increase in exports to the North, in August, to a value of just over €2.2bn.

The eurozone's unadjusted trade surplus was much smaller than expected in August as imported energy costs rose.

Eurozone's trade surplus dropped by €10bn

The EU’s statistics office Eurostat said the external trade surplus of the 19 countries sharing the euro was €4.8bn in August compared to €14bn a year earlier. Economists had expected a €16.1bn surplus. Adjusted for seasonal swings, the trade surplus was €11bn, Eurostat said.

Eurostat said the EU's trade deficit in energy in the January-August period grew to €151.9bn from €108.7bn in the same period of 2020.

Energy prices affect balance of trade

The EU's trade deficit with Russia, its main energy supplier, surged to €37bn in the first eight months of this year from €12.9bn in the same period of 2020. Similarly, trade with Norway, another EU gas and oil supplier, swung to a deficit of €2.4bn from a surplus of €3.6bn.

The impact of energy offset a surge in the surplus in trade with Britain after Brexit, which moved to €93.1bn in the January-August period from €65.6bn in the same period last year, when Britain was still part of the single market under the Brexit transition period.

Also, the EU trade surplus with the US rose sharply to €110bn from €92.6bn thanks to a steep rise in exports.

• Additional reporting Reuters