Surge in US trade and recovering pharma sector sees Irish goods exports up 8% in August

The US accounted for 38% of all exports in August, new figures from the CSO show

While the value of exports to the US rose by 30% in August compared to the same month in 2023, this offset a fall in exports across all other major regions including Great Britain, the EU and the rest of the world. Picture; David Creedon / Anzenberger

Irish goods exports grew by 8% in the first eight months of 2024, underpinned by a strong pharmaceutical and chemical sectors and a surge in trade with the US.

New figures released on Tuesday by the Central Statistics Office (CSO) show that in August, Ireland's unadjusted exports of goods rose by €1.2bn to €17.3bn compared with the same month in 2023.

Exports of medical and pharmaceutical products grew by 20% to €8.2bn in August 2024 compared to the same period last year, accounting for 47% of total exports. 

However, this offset a 10% drop in exports of organic chemicals, totalling €1.5bn in the same period.

The CSO's figures show a continued recovery for pharma exports, which dipped in 2023 for the first time in more than a decade, prompting concerns this would negatively impact growth and the wider economy.

While it has largely bounced back, several challenges for the sector await in the pipeline, with drug manufacturers facing stricter access and pricing environments as the US introduces price regulation in what has historically been a free-pricing market. 

In addition, rising manufacturing costs now sit at the top of Big Pharma’s priority list, forcing difficult decisions including budget reallocations, restructuring and headcount reductions.

Earlier this month, Pharma giant Pfizer announced it would cut 200 more jobs across its Irish operations in an effort to trim costs, with the company struggling in recent months to compete with rivals Eli Lilly and Novo Nordisk, both of whom have cashed in on their respective obesity and weight-loss medications.

This marked Pfizer's second round of Irish job cuts in the past 12 months, with the giant laying off 100 employees in November last year.

US market 

While the value of exports to the US rose by 30% in August compared to the same month in 2023, this offset a fall in exports across all other major regions including Great Britain, down 6%, the EU which fell by 1% and the rest of the world, which also dropped by 6%.

The US is now the Ireland's biggest market, overtaking the EU and accounting for 38% of all exports in August.

So far this year, the value of goods exports has exceeded €143bn, with chemical and related products making up almost two-thirds of the total value. 

Goods exports to the US have risen by 24% in the eight-month period, totalling €45.5bn between January and August. 

Meanwhile, goods imports in August totalled €11bn, reflecting an 8% increase on the same month last year but remain down by almost €4bn in the first eight months of 2024.