Goods exports soar by 20% in 2015 to highest ever level

Goods exports soared by 20 per cent in 2015 up to €111 billion, pushing the trade surplus up to the largest on record. Strong growth in medical and pharma exports was the main driver behind export growth.

In the 12 months to December 2015, Irish goods exports rose by €18.4 million, or by 20 per cent, to €111 billion, pushing the trade surplus up to a record €44 billion, the largest surplus on record and the first positive rise since 2010.

Medical and pharmaceutical products accounted for 27 per cent of total exports in 2015, an increase of 36 per cent over 2014.

In December, goods exports rose by 7 per cent or €656 million to €9.8 billion. The EU accounted for half of total goods exports in the month, of which € 1.2 billion went to Great Britain and almost €1 billion to Belgium. Outside the EU, the US was the main destination, accounting for a further 23 per cent of total exports in December.

Imports

On the other side of the trade balance, goods imports also rose, up by 10 per cent to €67 billion in 2014. Imports of chemicals and related products accounted for 21 per cent of total imports, as they rose by 22 per cent to €13.9 billion compared with 2014.

The figures also show strong growth in the import of cars, up by 33 per cent on 2014 to €3.4 billion.

But it wasn’t all about growth. Imports of machinery and transport equipment from the USA fell by 10 per cent compared with 2014, while imports of these products from China increased by 34% per cent over the same period.

Imports rose by €11 million to €5.9 billion in December. Some two thirds of imports came from the EU in December, with a further 26 per cent the UK. The US was the source of 10 per cent of imports, and China 6 per cent.

Alan McQuaid, economist with Merrion Capital , said 2015 was another “robust performance” for Irish goods exports, but cautions against the impact of changes in the UK.

“However, with sterling starting to weaken against the euro on “Brexit” fears and a less favourable Bank of England interest-rate outlook, that could weigh negatively on Irish exports to the UK in 2016,” he said.

Nonetheless, Mr McQuaid thinks the overall trade surplus for 2016 will be higher than in 2015.

“We are currently projecting a positive trade balance of € 46-48bn,” he said.