Economists welcome first-quarter jump in export value of 5%

THE VALUE of Irish exports rose 5 per cent in the year to April in what economists described as the quiet good news story of the struggling economy.

External trade data from the Central Statistics Office shows imports fell 6 per cent on a seasonally adjusted basis leading to an increase in the State’s trade surplus.

Dr Ronnie O’Toole, chief economist with National Irish Bank, described the performance of Irish goods exports over the last year, which rose to €7.7 billion in April, as “remarkable”. “While worldwide exports have been in freefall since Christmas, Ireland has been virtually alone among non-oil exporting countries in actually increasing export levels.”

Over the same period, there was a sharp decline in imports which dropped 27 per cent to €3.9 billion in April and were 22 per cent down since the start of the year.

This pushed the State’s trade balance to a record monthly level of €3.86 billion in April.

According to Dr O’Toole, the strength of the pharmaceutical sector here – largely “recession proof” – accounted for more than half of all goods exports. “The strong performance by Ireland in 2009 also reflects the underlying strength of Ireland’s multinational exporters, which remain highly competitive,” he said.

During the first quarter, the value of medical and pharmaceutical sector exports rose 19 per cent while computer equipment exports dropped 26 per cent.

One group of exporters facing difficulties are indigenous firms for whom the UK is a significant market. Dr O’Toole said the euro/sterling exchange rate remained significantly above 2005 levels, leaving many exporters facing “immense pressure”.

The value of vehicle imports dropped by 76 per cent during the first three months while the collapse of the construction sector resulted in a 50 per cent drop in iron and steel imports.

Separate wholesale price data released by the CSO yesterday showed the value of goods leaving factory gates rose 1.3 per cent in the year to May. Prices for food rose 12.4 per cent, while those for dairy products fell 9.8 per cent.