Figures show what can be achieved - Record export growth

THE difference between optimism and wishful thinking is the difference between achievement and disappointment. It is also the difference between building on solid foundations or on sand. 

In an ever colder, increasingly demanding world, this contrast becomes more apparent by the day — as does the gap between realism and fantasy in economic planning.

The announcement yesterday that goods exports jumped by 20% — €18.4b — to €111bn last year suggests that the growing confidence, and reality, of our economic recovery justifies optimism and is built on a solid foundation. These figures, unimaginable just a few years ago, pushed the trade surplus up to a record €44bn, the largest surplus on record and the first positive rise since 2010.

Any Government would be entitled to feel a sense of achievement around these figures, but one that took office at such a critical juncture in our history — when the country teetered on the verge of bankruptcy in early 2011 — deserves to be given full credit for this spectacular recovery, as does the society that understood and accepted the very challenging realignments needed to achieve this best-in-Europe performance.

The optimism generated by record exports was strengthened when impressive export figures were matched by significant job announcements. Two pharma companies are to, between them, create 500 jobs. MSD will create 200 jobs at manufacturing sites in Carlow, Cork and Tipperary. Another announcement detailed how pharma research firm APC is to create 100 jobs in Dublin.

Vigorous growth in medical and pharma sectors was the driving force behind export growth. Medical and pharmaceutical products accounted for 27% of exports in 2015, an increase of 36% over 2014. This trend has been apparent for some years but has taken decades to achieve. When we joined the EEC in 1973 the sector employed fewer than 2,000 people and exports barely reached €100m per annum. The sector now employs over 24,500 people directly with an equivalent number employed providing services. Ireland is the largest net exporter of pharmaceuticals in the EU. The sector is made up of a mix of international and local companies. Approximately 120 overseas companies have plants in Ireland including nine of the 10 largest pharma firms in the world.

This is a society-defining level of progress and a vindication of all of the work done by the Sate agencies entrusted with attracting foreign investment to our shores.

However, we might be foolish to assume that this trend, pretty much the life-blood of our economy now, will continue indefinitely. Hardening attitudes on international taxation, and a series of international reports that challenge perceptions around our education system, and the uneven quality of graduates, suggests we have a lot to do to continue to enjoy this hard-won position. As sterling falls against the euro because of growing fears that Britain might quit the EU, and a less favourable Bank of England interest-rate outlook, another note of caution is justified. Nevertheless, the overall picture is one of considerable achievement, one that we can confidently continue to build on.