Irish exports are forecast to rise by 1 per cent to €155 billion this year, according to a new report which shows that exporters have returned to growth.
The Irish Exporters Association's (IEA) half-year review reveals that merchandise exports showed a return to growth of just under 2 per cent, which the association called "a remarkable performance given the current economic climate."
It is forecasting figures that merchandise exports will increase by two percent in 2009 with service exports falling by one per cent. Taken together, this would see total Irish exports rising by 1 per cent to €155 billion for 2009.
Service exports fell by 5 per cent for the first half of 2009, which the IEA said was better than expected given the current economic climate. It said that exports were boosted by a 6 per cent increase in the business services sector, which now accounts for 34 per cent of total services exports.
By contrast, the insurance sector fell by 16 per cent and financial services exports by 16 per cent.
The IEA's chief executive John Whelan said that while the latest figures are encouraging given the recession, they mask a major problem which is affecting Ireland’s traditional export sector.
“The bulk of growth in merchandise exports for the first-half of the year has come from companies, multinational in the main, in the life-sciences sector which includes pharmaceuticals, chemicals and medical devices,” said Mr. Whelan.
He added that the life-sciences sector now accounts for some 56 per cent of total Irish exports and is a sector which is largely shielded from global economic downturns.
The IEA said that the majority of 25,000 jobs lost in manufacturing since June 2008 had been in exporting firms and warned that up to 35,000 more jobs could be lost unless action is taken to protect export-led companies.
