The value of Irish exports rose 7 per cent to €7.45 billion in the month to May, although they remain lower over the first five months of the year than in 2007, according to figures published today by the Central Statistics Office (CSO).
Imports increased by 3 per cent to €4.74 billion between April and May but are 10.9 per cent lower than May 2007.
Rossa White, senior economist with Davy said exports were growing in volume terms. “The majority of Irish goods exports are priced in dollars because manufacturing industry is dominated by US-owned firms.”
“Due to dollar weakness, export prices were down about 4 to 5 per cent year-on-year in April-May. As a result, merchandise exports increased at least 3 per cent year-on-year in those couple of months,” he said.
Mr White said exports to China were particularly encouraging, rising 38 per cent between January and May, while exports to almost all other destinations fell in value.
He noted imports had been falling sharply all year, 10.9 per cent lower in May year-on-year, and revised down his full-year export growth forecast of 6 per cent to 4.1 per cent.
In the first four months of this year, double-digit decreases were recorded in the export of computer equipment, organic chemicals, eggs and dairy products.
Overall, the value of exports fell 4 per cent between January and April to €30.179 billion compared with the same period in 2007. Imports declined by 5 per cent over the period to €20.53 billion.
The seasonally adjusted trade surplus in May was €2.62 billion, as against €2.29 billion in April and €2.12 billion in March.
Alan McQuaid, of investment firm Bloxhams, said that after “a lot of very bad news on the Irish economy in recent weeks, these figures are encouraging with the seasonally adjusted trade balance in May at its highest level in just over a year”.
“The external performance of the economy improved in 2007 with exports of goods and services outpacing export market growth for the first time in a number of years.”
He said this was due to an improvement in high-technology exports combined with a continuing strong performance by services.
Despite this, Mr McQuaid said the outlook was for weaker export growth this year due to global economic weakness and pressures associated with the strength of the euro.
Fine Gael’s finance spokesman, Richard Bruton, said the data dampen any hopes that “a revival in exports will kick-start economic recovery”.
They also illustrated the difficult trading environment facing exporters. “Prices that exporters are receiving for their produce fell by 4.4 per cent in the first quarter of 2008 compared to the same period last year.”
“This entirely wiped out the increased volume of exports up 2.3 per cent in the same period,” Mr Bruton said.
Exports of chemicals rose by 47 per cent, medical equipment and pharmaceutical exports were up 8 per cent, while the value of petroleum products shipped outside the country was 79 per cent higher.
The slowdown in new car sales contributed to a 16 per cent fall in the value of car imports to €1.65 billion, with overall transport imports, including aviation equipment and planes, falling 19 per cent.
Exports to the United States were down 3 per cent in the first four months of the year at €5.47 billion compared with the previous year, reflecting the rise in the euro against the dollar.
Exports to the UK were broadly flat in value terms over the same period at €4.76 billion.
