Irish export growth was sluggish in the first quarter of the year as a result of financial uncertainty in the euro zone, the Irish Exporters Association has said.
The association said that exports grew by 3.6 per cent in the quarter but that the increase fell short of the levels required to result in the creation of new jobs.
Service exports were a strong performer, increasing by 8.1 per cent as foreign direct investment continued at a solid rate. Merchandise exports rose up by just 0.1 per cent.
The association said it was concerned that the euro zone economic crisis could spill over and damage a sustained recovery in the US economy, which accounts for 23 per cent of Ireland's goods exports and 7 per cent of services exports, and further dampen Irish prospects.
It also said a rapid rise in the price of diesel and other heavy fuels was having an effect on the costs of getting goods to market and "will inevitably act as a drag on manufacturing exports" .
The association said the full year outlook had deteriorated and that it anticipated export growth of some 3 per cent, with goods and services exports expected to rise by 1 per cent and 6 per cent respectively.
"Growth of this magnitude will inevitably result in much lower job creation from the export sector this year, which was expected to yield 30,000 jobs directly and a similar number indirectly in the wider economy under the Trade and Investment towards 2015 strategy," Irish Exporters Association chief executive John Whelan said.
Irish exports to the UK increased by 19 per cent in the quarter but exports to China fell by 5 per cent in the same period. Mr Whelan said recent trade deal between Ireland and China and a visit to Ireland by Chinese vice-president Xi Jinping was likely to help correct the decline.
Exports to the other fast developing BRIC countries increased with the Brazil and Russia markets each growing by 32 per cent and the Indian market rising by 14 per cent.
The association said it was a concern that only 4 per cent of Irish exports were going to the BRIC economies, compared to an average of 20 per cent average across the EU.
