Ireland's trade surplus declined for the second month in a row in March, as imports jumped by 26 per cent but exports experienced slower growth, according to the Central Statistics Office.

While a surplus of some €3.0 billion was recorded in March, according to preliminary figures, this is €600 million less than that reported in February.

Although exports rose in March, up by 5 per cent or €361 million to €7.6 billion on a seasonally adjusted basis, imports rose by a significant 26 per cent or €961 million, thus cancelling out the growth in exports. The rise in imports was largely due to an increase of €675 million in the imports of transport equipment, such as aircraft.

With regards to exports, chemicals and related products accounted for €5.13 billion, or 60 per cent of the total exports of €8.5 billion reported in March 2012. On an annual basis, exports of medical and pharmaceutical products fell by €681 million, or 24 per cent, while the value of exports of organic chemicals rose by €233 million, or 13 per cent.

The EU accounted for €5,259 million, or 62 per cent of total exports in March 2012, with Belgium and Great Britain accounting for over half of the EU share. The USA was the main destination for exports outside the EU, accounting for 17 per cent of total exports in March 2012.

Britain was the main source of imports in March 2012 accounting for €1,356 million, or 27 per cent of total imports, followed by the USA at 23 per cent.

For the first three months of 2012 exports amounted to €23.69 billion and imports of €13.3 billion representing a trade surplus of €10.3 billion.

In a note, Glas Securities said that it was encouraging to see that exports in the first quarter have remained at the same level as last year, and that the year to date trade surplus is only slightly behind the surplus recorded in Q1 2011.

"While concerns regarding external demand look set to continue, trade figures have not shown significant signs of weakening as yet," it added.