Trade surplus narrows in September after drop in exports

The value of Irish exports fell by 4 per cent to €8.26 billion in September while imports dropped by 3 per cent to €4.92 billion, figures from the Central Statistics Office (CSO) show.

As a result, the State’s trade surplus for September decreased by €252 million or 7 per cent to €3.34 billion.

Despite the monthly decline, the CSO figures point to another strong year for exports.

On an adjusted basis, the value of goods exports in September was €8.76 billion, representing an increase of €420 million or 5 per cent on the same month last year with big pharma the main driving force.

Exports of medical and pharmaceutical products grew by 14 to €2.3 billion in September compared with the same month last year.

There were also notable increases in exports of essential oils, which rose 17 per cent to €616 million, and electrical machinery which increased by 24 per cent to €250 million.

The EU accounted for €5 billion or 58 per cent of total exports in September, of which €1.28 billion or 25 per cent went to Belgium.

Antwerp is one of the largest global drug redistribution hubs and receives most of the State’s pharma exports which are not destined for the US.

The US was the main non-EU destination accounting for 22 per cent or €1.9 billion of total exports in September.

The unadjusted value of goods imports in September was €4.9 billion representing a decrease of €284 million (5 per cent) on September 2014.

One of the main drivers was a €245 million (47 per cent) fall-off in imports of petroleum products.

Imports of transport equipment (including aircraft), meanwhile, decreased by €642 million (82 per cent).

The CSO has begun recording the purchase of aircraft by leasing companies resident in Ireland as imports.

Ireland is a global hub for aircraft leasing, with approximately 4,000 commercial aircraft leased through companies here, representing a total value of $115 billion.

Economists believe the inclusion of these idiosyncratic trading patterns will make Ireland’s trade figures more difficult to interpret.

The EU accounted for 60 per cent of the value of goods imports in September, with €1.39 billion (28 per cent) of total imports coming from Britain.