IRISH EXPORT growth was sluggish in the first quarter of the year as a result of financial uncertainty in the euro zone, the Irish Exporters Association has said.
The association said that exports grew by 3.6 per cent in the quarter but that the increase fell short of the levels required to result in the creation of new jobs.
Service exports were a strong performer, increasing by 8.1 per cent as foreign direct investment continued at a solid rate. Merchandise exports rose up by just 0.1 per cent.
The association said it was concerned the euro zone economic crisis could damage a sustained recovery in the US economy, which accounts for 23 per cent of Ireland’s goods exports and 7 per cent of services exports, and further dampen Irish prospects.
It also said a rapid rise in the price of diesel and other heavy fuels “will inevitably act as a drag on manufacturing exports”. The association said the full year outlook had deteriorated and that it anticipated export growth of some 3 per cent, with goods and services exports expected to rise by 1 per cent and 6 per cent respectively.
“Growth of this magnitude will inevitably result in much lower job creation from the export sector this year,” Irish Exporters Association chief executive John Whelan said.
