The Republic's trade surplus with the rest of the world fell by over 11 per cent from February to March 2003, according to provisional figures released by the Central Statistics Office (CSO) today.
The value of unadjusted exports in March 2003 was €6.95 billion, down €2.10 billion compared with the same period the previous year.
Imports over the same period also decreased, falling by €1.29 billion to €4.04 billion.
Exports exceeded imports by €2.500 billion, the lowest trade surplus for almost two years.
The CSO also noted a significant fall in exports of electrical machinery and parts to Britain. Exports in these products dropped 66 per cent to €794 million in the period from February 2003 to the same period last year.
IBEC economist Mr David Croughan said the trade figures were probably distorted because of the rapidly strengthening euro resulting in sharp falls in the price of traded goods.
Companies selling in dollars or sterling would have taken a hit on these two weakening currencies but may have cushioned the blow by hedged their exposures.
Mr Croghan said the decline export prices emphasised the need to contain inflation which was still running at twice the euro zone average and putting Irish competitiveness at serious risk.