The Republic's trade surplus with the rest of the world fell to €2.62 billion in December, down from €3.22 billion in November.

Imports rose during the month by 12 per cent to €4.47 billion, while exports declined by 2 per cent to just over €7.09 billion according to figures released by the Central Statistics Office.

Detailed data for the first 11 months of 2004 were also published. They show that exports increased by 2 per cent over the period to €76.8 billion. However, Goodbody Stockbrokers pointed out that the figures may understate the real level of exports as the US is Ireland's main export market.

"We believe that the incidence of dollar pricing by export-orientated firms is depressing the value data upon conversion into euros," said Mr Phillip O'Sullivan, an economist with the stockbrokers. He added that this analysis was supported by US Census Bureau statistics which showed that imports from Ireland were up 8 per cent in the first 11 months of 2004.

Imports increased by 4 per cent during the period, with the biggest increase in transport equipment including planes, which grew by 95 per cent to €1.2 billion. Petroleum and related materials rose by 28 per cent to €1.9 billion reflecting the steady increase in oil prices during the course of the year.

Yesterday's figures also contained the first detailed breakdown of the November 2004 figures and Goodbody noted that exports of machinery and transport equipment were particularly weak in the period.

"This is worrisome as this sector [ which includes PC manufacturing] is the second largest export group," according to Mr O'Sullivan.

The Irish Exporters Association has given a "big welcome" to the plan announced this week to implement the recommendations of the Enterprise Strategy Group.

Mr John Whelan, the chief executive officer of the Irish Exporters Association said that the implementation plan contained many of the association's recommendation.

But he warned that "there is every indication that most of the actions are being reviewed only within the realms of the civil service and the semi-state bodies. For any action plan to succeed it must be fully developed and brought into the business community and in particular those trading internationally".

The Enterprise Strategy Group, which was set up in 2003, made 52 recommendations aimed at re-focusing Irish industrial policy.