Brexit goods checks may be weighing on Irish exports, figures suggest

Carol Lynch, Partner in the BDO customs and international trade services department said there is now an opportunity for Central Banks around the world to reduce interest rates, which would “stimulate demand in Ireland’s main export markets.” Picture: David Creedon

Brexit goods checks implemented by Britain in January seemed to weigh on the annual level of Irish exports, suggested figures by the Central Statistics Office (CSO).

Exports to Britain declined to €1.2bn in February, a 5% drop compared to figures recorded in the same period a year earlier.

Janette Maxwell, director in tax at professional services firm Grant Thornton, said the decline was “unsurprising” following the introduction of Brexit-induced customs controls at the end of January.

Ms Maxwell said the CSO figures highlighted “difficulties experienced by Irish traders when selling goods” into Britain.

Exports to the British market may be hit further as a Brexit border tax on plant and animal products will be applied from the end of April.

Meanwhile, the value of goods exports from Ireland fell by almost €800m annually, according the CSO figures.

In unadjusted terms, the value of Irish exports fell 5%, or by €777m, to €15.9bn in February compared to the same month a year earlier.

The pharmaceutical sector boosted export figures. Pharma goods exports rose by 15% to €6.5bn annually.

However, this is a fall from almost €9bn in pharma exports reported in January, highlighting the volatility in one of the largest sectors in Ireland which accounts for around half of all exports. 

Exports of goods in February 2024 were almost €16 billionhttps://t.co/nivc3C02Ml#CSOIreland #Ireland #Trade #IrishTrade #Exports #Imports #Businessstatistics #IrishBusiness #BusinessNews #Brexit pic.twitter.com/5jcWM8WmGo

— 🎄Central Statistics Office Ireland (@CSOIreland) April 16, 2024

Carol Lynch, Partner in the BDO customs and international trade services department said there is now an opportunity for central banks around the world to reduce interest rates, which would “stimulate demand in Ireland’s main export markets.” 

“However, global geopolitical developments present significant downside risks to projected growth,” she said.

The European Central Bank is expected to announce at least two interest rate cuts by the end of the year.