Irish exports remain relatively resilient in December

The value of exports from Ireland was 4 per cent higher in December 2008 than the comparable month in 2007, suggesting the State’s manufacturing sector remained relatively resilient last year.

Detailed external trade data from the Central Statistics Office (CSO) show the value of exports were €6.76 billion in December, while imports were down 19 per cent year-on-year at €3.86 billion.

Ronnie O'Toole, chief economist with National Irish Bank, said the figures were evidence of a sharp reduction in global trade and described the “extent and uniformity of the decline in exports globally" as shocking.

However, he said exports from Ireland over the year had remained relatively stable as the growth in pharmaceuticals compensated for the continued decline in electronics.

Over the first 11 months of 2008 exports of electronic components were 27 per cent lower which Mr O'Toole said was evidence of the changing structure of Irish industry as the importance of computer industry diminished while that of the pharmaceutical sector grews.

"As pharmaceuticals are not as import-intensive as electronics, this has helped fuel the trade surplus, which by the end of 2008 was running at €1 billion a month higher than the end of 2007, while the December figure was the highest monthly trade surplus in almost five years," he said.

“The broad picture of relatively resilient exports is consistent with Eurostat figures which showed that new export orders in Ireland were stable in December.”

The impact of the economic slowdown on consumer demand was reflected by a fall in the value of imports in December 2008, which were 11 per cent lower than previous month. For the first 11 months of 2008 the value of imports has declined 10 per cent to €52.7 billion.

Mr O'Toole said the State’s merchandise trade surplus grew by €4 billion to €29.5 billion in 2008, and on current trends would grow significantly in 2009.

“This should result in a halving of Ireland's current account deficit in 2009, which stood at well over 5 per cent of GDP in 2007/2008.”