Irish trade surplus at new high

Ireland's trade surplus rebounded in November to reach a new high, according to new figures from the Central Statistics Office (CSO).

The trade surplus widened to €4.3 billion in November on the back of increased exports, according to new figures from the Central Statistics Office (CSO).

The rise comes after the country's trade surplus had narrowed to €3.7 billion the previous month.

The data shows seasonally-adjusted exports rose 5 per cent in November to €8 billion, while imports declined 6 per cent to €3.7 billion resulting in a 16 per cent increase in the trade surplus to €4.3 billion, the highest on record.

On an unadjusted basis, the value of exports in November rose by 9 per cent compared to a year earlier while imports were up 2 per cent.

For the first ten months of 2011 exports increased by 4 per cent to €76.9 million while imports rose by 7 per cent to €40.1 million.

Minister for Jobs, Enterprise and Innovation, Richard Bruton welcomed the latest figures .

"In recent months we have seen several signs of deterioration in the global economy, particularly connected with problems in the euro zone, and several commentators have suggested that our exports could suffer. In that context, today’s results, and the great resilience which our exports are showing in difficult circumstances, are encouraging," he said.

Exports of organic chemicals rose by 11 per cent in the first 10 months of 2011 while medical and pharmaceutical products increased by 8 per cent and dairy products by 28 per cent.

During the same period, computer equipment exports declined 11 per cent.

Exports of goods to the US increased by 3 per cent or €528 million during the first ten months of 2011 and the US accounted for 23 per cent of all exports.

Goods to France rose by 14 per cent or €502 million in the ten months under review while exports to Britain were up 4 per cent to €450 million.

Belgium and Great Britain were Ireland’s second and third main export markets for the period January to October.

Nearly one third of Ireland’s imports came from Britain with imports from there rising by 15 per cent or €1.69 million. German imports increased by 14 per cent or €367 million.

In the first ten months of the year, imports of petroleum rose by 25 per cent or €875 million, while medical and pharmaceutical products were up by 26 per cent or €747 million and Organic chemicals by 28 per cent or €463 million.

Bloxham forecasts that the overall trade surplus in 2011 will be about €45 billion a new record high.

Its chief economist Alan McQuaid said given the slowdown in the world economy and the fall-off in global demand, the latest figures were "very impressive."

"The export sector has been the main driver of Irish economic activity in recent times and will remain the key growth engine for some period to come," he said.

"Despite the slowdown in the global economy, it is clear that Ireland has a very healthy and dynamic export model, and overall, it is in our view in a much better position than other Eurozone 'peripheral' debt countries to move forward once world growth picks up again."

Davy's chief economist Conall Mac Coille said the specialised nature of Irish exports into niche sectors and improvements in competitiveness may have softened the blow of the euro area slowdown.

However, he warned that weaker demand from the euro zone presents a downside risk to growth in the Irish export sector.