Exports to the US jump ahead of pre-election trade mission

The pace of job creation in the multinational sector cooled in the first half of the year as the number of investment contracts into Ireland also fell, IDA’s annual results showed. Picture: David Creedon

Goods exports from the Republic to the US surged in the first five months, ahead of a trade mission to improve relationships between the two markets ahead of looming elections.

Figures from the Central Statistics Office (CSO) showed exports to the US grew by €6.2bn, up by 28% in the year to date when compared with the same period a year earlier, and were driven by output in the chemicals and related products sector.

The upcoming US election may impact Ireland’s exports and subsequently GDP as the Inflation Reduction Act  — which specifically targets green energy companies — has lured some investment away from Ireland, according to business representative group Ibec which recently said this has become an issue for some of its larger members.

The CSO figures were published while Enterprise Minister Peter Burke and the State agency responsible for foreign direct investment were in New York and Boston to improve trade relationships in the US. 

There are currently around 900 Irish-owned companies exporting to the US

IDA chief executive Michael Lohan said that the “competition for foreign direct investment has never been as intense”, but added that Ireland remains a “stable location” for investment and expansion.

However, the pace of job creation in the multinational sector cooled in the first half of the year as the number of investment contracts into Ireland also fell, IDA’s annual results showed.

The IDA secured 131 foreign direct investment contracts which have an associated employment potential of 8,900.

In the same period last year, the State-body won 139 contracts with the potential to create 12,000 jobs.

Meanwhile, the CSO figures showed the total value of Irish goods exports reached €91bn from January to May — up 10% on the same period in 2023.

Chemicals and related products showed the largest changes when it came to exports and imports during this period.

The jump was driven by output in the pharmaceutical and medical product sector, which has been somewhat volatile since its outperformance during the pandemic.

“It goes without saying that international trade is hugely important to the Irish economy," the director in tax at Grant Thornton, Janette Maxwell, said.

Ireland relies on international markets for continued growth, and to create and sustain jobs across the country

“Despite the current global uncertainty, there are strong indicators that Ireland is maintaining its resilience in the marketplace,” she said.

Chemicals and related products showed the largest changes when it came to exports and imports during this period. 

Exports of these goods grew by €5.5bn, compared with the same period in 2023, and imports fell by €4.4bn at the same time. 

In May, Britain accounted for around 7% of all Irish exports. The EU was the largest market, accounting for around 39% of total goods leaving the Republic.

Food and live animals overtook chemicals and related products as the largest export to the British market in May. 

"This can be attributed to the strength of the domestic food and agricultural economy and is particularly positive considering the increased import controls going into the UK," said Carol Lynch, a partner in the BDO Customs and International Trade Services department.