Exports to fall €2.8bn as pharmaceutical sales decline

The value of exports from the Republic is set to fall by €2.8 billion this year as earnings from pharmaceutical sales slip again, according to the latest estimates.

Industry group the Irish Exporters’ Association reported yesterday that the total value of exports in the first six months of this year was down 1.9 per cent at €88.6 billion from €90.3 billion during the same period in 2012.

Its chief executive, John Whelan, said that, barring an improvement in the Republic’s main markets in the EU, merchandise exports would fall by €5.5 billion this year overall while the value of services sold abroad would increase by €2.7 billion.

“So, in total, exports will fall by €2.8 billion or 1.6 per cent across the year,” he said.

“In these circumstances it will be hard for any overall increase in employment.”

Merchandise exports slumped by €3 billion or 6.4 per cent to €43.3 billion in the first half of the year from €46.3 billion. Services partly offset this, growing by €1.3 billion to €44 billion.

Expired patents
The association highlighted a fall in the value of pharmaceuticals – the result of patents on a number of drugs manufactured here expiring – as the main reason for the fall in the value of goods exported from the Republic.

However, it noted that amid the general fall in manufacturing exports, the agri-food and drinks industry continued growing, adding 8 per cent to overseas sales during the first half.

Mr Whelan acknowledged the first six months of the year had been more difficult than expected for exporters, as the fall in merchandise sales and the contraction in services growth were both worse than anticipated.

“Stronger domestic and export growth can be achieved if additional policy action is taken to lift the investment rate in the Irish economy, and an extensive expansion of the government trade support agencies’ presence on the ground in the emerging markets,” he said.

Mr Whelan added that if the Government implements these policies in the budget, the Republic can expect a return to export growth in 2014.

The IEA is forecasting the value of overall exports could rise by €8.8 billion next year to €188.5 billion.