Ireland's trade surplus decreased by €34 million or 1 per cent to €3.8 billion in February, as exports rose 3 per cent, according to new figures from the Central Statistics Office (CSO).

Exports increased by €238 million or 3 per cent to €8.52 billion from January while imports rose by 6 per cent or €272 million to €4.72 billion.

On an annual basis the value of exports was up 17 per cent or €1.14 billion to €7.93 billion, driven primarily by a 37 per cent rise in exports of pharmaceutical products and a 20 per cent increase in exports of manufactured articles.

The EU accounted for 53 per cent or €4.21 billion of all exports shipped in February, of which 13 per cent went to Britain and Belgium. The US was the main non-EU destination accounting for 23 per cent or €1.80 million of exports.

The value of imports increased by 12 per cent or €484 million to €4.56 billion on an annual basis in the 12 months to February.

Imports of machinery and transport equipment were up 23 per cent or €239 million to €1.28 billion. Imports of Petroleum and related materials decreased by €147 million or 32 per cent to €310 million over the year.

The EU accounted for 63 per cent of the value of imports in February, with 29 per cent of all imports coming from Britain. The US and China were the main non-EU sources of imports.

Conall Mac Coille of Davy said the latest data provide more evidence that activity in the export sector is expanding at a stronger pace following a modest recovery last year.

“Ireland’s volatile trade data have been buffeted by developments in the pharmaceutical sector such as the patent cliff and, more recently, contract manufacturing. The data, which are unaffected by contract manufacturing, show strong growth in pharmaceutical exports, up 23 per cent year-to-date. This suggests that activity is recovering after the negative impact of the patent cliff in 2012 and 2013. This is not surprising given recent investments by multinational companies operating in Ireland in R&D, plant and machinery to help bring online biopharmaceuticals and niche drug products,” he said.

Alan McQuaid, chief economist with Merrion Capital said it will be difficult for exporters to increase and maintain market share in what has become an ever-more competitive environment. However, he added that Irish exporters should continue to perform well on a relative basis.

“Although not as strong as 2014, we still see Irish exports of goods and services posting a high single-digit volume increase in 2015, which should help contribute to another 4 per ent plus GDP growth rate this year,” he said.