Trade surplus reaches €38.4bn

The Republic recorded a record trade surplus of €38.4 billion last year, according to data released by the Central Statistics Office yesterday.

But economists warned against drawing optimistic conclusions from the 8.5 per cent growth, attributing it to continuing import weakness rather than export strength.

Latest figures show the Republic exported €6.8 billion of goods in December, marking a 4.3 per cent decline on the same month of 2001. Over the same period, imports fell back by 9 per cent to €4.1 billion.

Mr Robbie Kelleher, head of research at Davy Stockbrokers, said December's exports had fallen almost 13 per cent below levels recorded two years previously.

"Were it not for the strong growth of the chemicals sector, the picture would have been a good deal worse," Mr Kelleher said.

Exports of chemicals rose 20 per cent last year, masking a decline of 9 per cent over the remainder of the export economy.

Mr Jim Power, chief economist with Friends First, said a breakdown of numbers for the first 11 months of 2002 showed indigenous export component of the economy was struggling to contribute to growth.

Detailed data show exports of medical and pharmaceutical products surged by 69 per cent to €14.3 billion in the year to November, while exports of organic chemicals rose 3 per cent to €16.6 billion. Exports of machinery and transport equipment, which account for about a third of total exports, meanwhile fell back by 11.2 per cent to €30.4 billion.

"The Irish export boom has ended for the moment at least," said Mr Power.