Exports increased ahead of Brexit vote

Exports of Irish goods rose sharply in the weeks before the Brexit vote but analysts say that that favourable conditions will likely be reversed in the coming months after the euro lost a huge amount of its competitiveness against sterling.

The CSO figures show the growth in exports in June were driven by medical and pharmaceutical goods and electrical machinery, to reach €9.55bn in June.

That’s up from €9.14bn in May and is 2.2% higher from the €9.34bn level in exports posted in June 2015. 

Meanwhile, imports fell both in the month and from the year earlier period, though import of cars and other road vehicles surged 36% to €374m in June from a year earlier. 

That brings to €2.24bn the value of road vehicles imported in the first six months of the year, up 27% from the €1.76bn of vehicles imported in the same period a year earlier.

Exports of medical and pharmaceutical goods surged 12% to €2.82bn from June 2015, while electrical machinery and appliances doubled to €509m. 

With €27.96bn worth of goods exported in the three months to the end of June, the quarterly figures were less impressive. 

Exports totalled over €27bn in the previous three months but were down from €28.46bn in the same quarter a year ago.

There is uncertainty surrounding how exports will fare in “a post-Brexit world”, said Alan McQuaid, chief economist at Merrion Capital, “but there is likely to be a negative impact on trade”.

“SMEs — particularly agri-food and tourism — will likely be more affected than larger companies by the introduction of tariffs and barriers to trade,” he said.

More on this topic

Johnson faces fresh showdowns on Brexit as deadline loomsJohnson faces fresh showdowns on Brexit as deadline looms

How can Boris Johnson ‘get Brexit done’ by October 31?How can Boris Johnson ‘get Brexit done’ by October 31?

Labour to push for Commons vote on new Brexit referendumLabour to push for Commons vote on new Brexit referendum

DUP ‘not seeking’ second referendumDUP ‘not seeking’ second referendum