Ireland's prosperity is at risk as export traders enter an economic recession, small business leaders announced today.
A fall in exports at a time when the rest of the world is performing well signalled a crisis, Pat Crotty, chairman of the Small Firms Association (SFA), claimed.
SFA chairman Pat Crotty
He told the organisation's annual conference at Dublin Castle that Ireland relies heavily on a healthy export trade for economic survival and the present downturn was going "unnoticed".
"A loss of market share is a danger sign for any company, therefore the reduction in Ireland's share of total EU exports from 9.5 per cent in 2001 to 7.5 per cent in 2005 should signal something of a crisis for Irish business," he said.
"Amidst all the euphoria about rising house prices, SSIAs and buoyant consumer spending, it has almost gone unnoticed that the traded sectors of our economy are in recession."
Mr Crotty warned the Government needed to shift its focus on to export traders as both consumer spending and the housing market were expected to slow down.
"Unfortunately, in the recent past, the Irish nation has been behaving more like a drug addict than a well-oiled business - high on cheap money," he said.
"The current boom has been induced by easy credit, which has fuelled personal consumption; has encouraged some businesses into speculative rather than productive activity; and allows Government to increase its spending.
"However, underlying all this is the harsh reality that the prosperity of this small trading nation ultimately depends on selling more of our goods and services in the global markets, which is what spawned the Celtic Tiger in the first place," Mr Crotty said.
PA