Irish trade surplus is boosted by imports fall

IRISH EXPORTS fell 3 per cent by value in 2009, led by a decline in demand for computer equipment and electrical and industrial machinery, figures from the Central Statistics Office show.

However, a decline in value of imports of more than 20 per cent gave rise to a trade surplus of €38.6 billion, 34 per cent higher than in 2008.

Exports were worth €83.4 billion last year, down from €86.3 billion in 2008.

Computer equipment fell 28 per cent to €6.6 billion, while electrical machinery decreased from €4.7 billion to €3.3 billion, a decline of 31 per cent. Exports of industrial machinery declined 29 per cent to €862 million.

This was offset by a rise of 17 per cent in exports of medical and pharmaceutical products, which rose to €19.5 billion, and a 2 per cent increase in the exports of organic chemicals, which totalled €18.2 billion last year.

Some of the largest declines were to Britain, which fell 15 per cent from €14.3 billion to €12.2 billion. Exports to Germany fell 21 per cent to €4.8 billion.

However, exports to the US rose by 5 per cent to €17.5 billion.

The value of imports fell 22 per cent from €57.5 billion in 2008 to €44.8 billion last year, as demand fell for cars, petrol and computer equipment. The value of imported road vehicles plunged 72 per cent.

Preliminary estimates for January 2010 showed exports were 3 per cent lower at €6.7 billion compared to a year earlier. However, imports were 16 per cent less for the month, totalling €3.3 billion.

Alan McQuaid, chief economist at Bloxham, described January’s export performance as “a strong start” to the year.