Rising business-related inflation is hurting export-led companies, according to the Irish Exporters' Association (IEA).
In its quarterly review for the first three months the IEA said that while the value of exports was 6 per cent higher at €22.7 billion compared with the same per period last year exports to the euro zone had fallen 8 per cent due in part to inflation.
John Whelan, IEA CEO, said pressures on exporters were "severe", and urged the new Government to reduce inflation.
"The incoming government must assist exporters to regain competitiveness by tackling, as a first priority, the high rate of inflation.
This has now run for 4 months at the 5 per cent level and is feeding into salary and wage expectations. However, it is also driven by the cost of general government services, including electricity and gas costs," he said.
The value of exports to the UK rose 2 per cent and those to the rest of the world rose 51 per cent. However, exports to the US were flat as the stronger euro caused problems.
Life sciences now account for 47 per cent of total exports while exports from the indigenous beverage sector grew by 24 per cent in the first quarter.