Imports rose faster than exports last year narrowing the trade surplus, according to the latest figures from the Central Statistics Office (CSO).
Exports for 2004 increased by 2 per cent to €83.89 billion due mainly to pharmaceuticals but was offset by a fall in computer equipment.
Imports grew by 5 per cent to just over €50 billion principally due increases in the road and other transport (including aviation) sector and fuels.
The resulting trade surplus fell by 1 per cent to €33.8 billion.
In December the value of exports was €6,978 million, up €81million on December 2003, while imports were €4,545million, up €194 million.
Despite a 3 per cent fall in the value of exports to the US, it remains Ireland's biggest export market, followed by Britain.
Exports to Belgium increased by 19 per cent, making it the third biggest export market.
Imports from China grew by 28 per cent last year to €2,839 million, but US imports dropped 6 per cent to just under €7 billion.
