The trade surplus continued to widen in October, as fewer goods were imported into the country.

According to the latest data from the Central Statistics Office, seasonally adjusted exports fell by 2 per cent between September and October to €7.6 billion, while imports decreased by 11 per cent to €3.5 billion.

This increased the seasonally adjusted trade surplus of 8 per cent to €4.1 billion. The trade in goods surplus has grown from €1.7 billion in January 2008.

"The recent data flow on the international economy bodes well for Irish trade performance. Markets are increasingly coming to the conclusion that the global recovery is underway and built on firm foundations," said Davy analyst Conall Mac Coille in a note this morning.

"That said, fiscal adjustments in the UK and euro area in 2011 may mean that demand for Irish exports may falter a little, but overall the prospects for Irish export growth look reasonably promising."

Between January and September, exports rose 3 per cent, or €2 billion, to €66.8 billion. This was driven by an increase of 13 per cent, or €2.2 billion in medical and pharmaceutical products. Meanwhile, metalliferous ores and scrap metal also showed an increase in exports, rising 83 per cent or €298 million.

This was partially offset by a decline of 32 per cent in the export of computer equipment. The export of other transport equipment fell by 72 per cent, or €462 million.

Ireland's biggest export markets in the first nine months of the year were the US, at €15.5 billion; Belgium, which accounted for €10 billion; and Britain, at €9.1 billion.

Minister for Trade and Commerce Billy Kelleher said the figures showed the "re-assuring positive trend" in the growth in exports over recent months has been maintained.

"Significantly an analysis of trends between January and October of 2009 and 2010 shows that our merchandise exports increased by 4.51 per cent or €3.223 billion to €74,66 billion," he said.

"This is an amazing performance by our exporters in what are extremely difficult trading circumstances globally and reflect our sharply improving competitiveness, which is an aspect of our economy which the Government will continue to pursue."

In the first nine months of the year, imports fell by 1 per cent, or €245 million to €33.8 billion. This was partly due to a 360 per cent decline in imports of other transport equipment, and a dip of 33 per cent in computer equipment.

Imports of petroleum were up by 36 per cent, while imports of medical and pharmaceutical products were 27 per cent higher. Road vehicles were up 73 per cent.

"The bottom line is that the export sector offers the one ray of light at the moment in a fairly gloomy economic picture, and will be the key driver of the Irish recovery story in the years ahead," said Bloxham economist Alan McQuaid.

"We are looking for a volume increase in goods and services of 7.5 per cent in 2010 and another healthy increase of 6.5 per cent in 2011. We also think the overall merchandise trade surplus will break through the €40 billion level this year."