The value of Irish exports fell 6 per cent last year to some €197 billion amid a steep decline in foreign sales of organic chemicals and semiconductors produced here, the Central Statistics Office (CSO) said on Thursday.
The value of exports from the pharmaceutical and medical device manufacturing sector, meanwhile, increased 9 per cent from 2022 to 2023 despite a slowdown in the sector globally. This category represented 42 per cent of total exports from the Republic last year.
However, organic chemicals exports plunged 57 per cent to a total value of €985 million, the CSO said, a phenomenon that has previously been attributed to a decline in the sale of Covid-19 vaccines since the emergency phase of the pandemic came to an end in 2022.
While the decline is significant, said BDO customs and international trade services partner Carol Lynch, it illustrates “a recalibration after Covid to reflect the drop in Covid vaccines”.
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“We believe the sector is likely to pick up again in 2024 and this is supported by Central Bank forecasts. We see an increase in imports of chemicals year on year, which leads to likely increased production and exports which also supports a positive narrative,” she said.
Meanwhile, exports of goods to Britain increased 2 per cent €17.6 billion in 2023 with the largest increase in machinery and transport equipment.
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“Of most interest to Irish manufacturers and Exporters will be that our exports of food and live animals are reasonably consistent, increasing marginally from €3.9 billion to €4 billion,” said Ms Lynch.
“The new import controls on these goods entering Britain were introduced end January so we have yet to see the impact of these.”
Despite the small 2 per cent increase in exports to Britain, “the annual figure is heading for €18 billion which shows a continued reliance by Great Britain on its closest trading partner”, said Janette Maxwell, director in tax at Grant Thornton Ireland.
“Overall for 2023, imports from Great Britain into Ireland had a 12 per cent decline to €21 billion in 2023, indicative of the fact that Irish traders are sourcing their products within other EU locations to avoid the inevitable delays and additional costs that arise when buying goods from outside the EU.”
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