A €5 billion fall-off in exports of medical and pharmaceutical products has triggered the first decline in the State’s headline export trade in nearly a decade.
The latest trade numbers from the Central Statistics Office (CSO) show exports across all categories fell by 5 per cent to €66 billion for the first four months of 2023.
The decline was driven primarily by a €5 billion (17 per cent) decline in exports of medical and pharmaceutical products between January and April. Electrical machinery and equipment exports were also down by €1.5 billion (33 per cent) for the same period.
The decline in headline exports, the first since before 2014, however, comes on the back of a record year in 2022. The first four months of 2022 were almost €18 billion higher than the first four months of 2021.
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The CSO also noted that 2023 exports for January to April were over €13 billion higher than the same period in 2021.
So while exports are down year on year, they are still at a very high level. The value of Irish imports for the same four-month period were up by 11 per cent at €46.3 billion.
On a monthly basis, imports from Britain fell by 9 per cent to €1.9 billion in April compared with April 2022. The largest decrease was in the imports of mineral fuels, lubricants and related materials, which fell by 43 per cent. Exports from the Republic to Britain fell by 22 per cent to €1.2 billion in April compared with April 2022. There was a sudden fall-off in trade with Britain in the early part of 2021 on foot of Brexit, with firms on both sides stockpiling goods. However, the impact has lessened since.
The European Union (EU) accounted for €6.4 billion (43 per cent) of total goods exported in April, of which €2.1 billion went to Belgium, €1.4 billion to the Netherlands and €1 billion to Germany. The US was the main non-EU destination, accounting for €4.2 billion (28 per cent) of total exports.
The value of Irish goods exports hit a record €208 billion last year despite a significant slowdown in global growth linked to inflation and Russia’s war in Ukraine. While the numbers this year are down, the State’s goods exports are still expected to be valued at close to €200 billion. The Republic is a global hub for pharma and medtech, playing host to 24 of the top 25 players, including Pfizer, Johnson & Johnson, Roche, Novartis and AbbVie. These companies traded strongly during the pandemic.
