THE COUNTRY'S trade position, despite being buffeted by the steep rise in the value of the euro in recent months, has continued to improve in the first part of the year, according to official figures published yesterday.
Ireland's trade surplus - the difference between exports and imports - swelled to € 2.4 billion in February, according to Central Statistics Office figures.
Having fallen to a 6½-year low in December, the trade surplus has surged to its highest point since last April, despite the euro's inexorable surge upwards since the middle of last year. Exports rose €222 million to €7.19 billion in February compared to the same month last year, while imports fell € 120 million to €5.17 billion compared to the same month of 2007.
Alan McQuaid, chief economist at stockbroker Bloxham, warned continued appreciation in the euro since February, rising domestic inflation and slowing world growth would more than likely erode export performance as the year wore on.
The euro this week hit a record high against the US dollar.
Mr McQuaid trimmed his estimates for export growth this year to 4 per cent, from 5.5 per cent last year, before recovering to a 5 per cent expansion in 2009.
But despite this, and given the expected flagging in demand for imports resulting from a slowdown in the Irish economy, Mr McQuaid said he was projecting the overall merchandise trade balance to increase marginally to €26.5 billion, from €26.2 billion.
