Value of Irish exports rises 5% to €9.5bn in June

The value of Irish exports rose 5 per cent to €9.5 billion in June while imports fell 8 per cent to €5.05 billion.

As a result, the State’s trade surplus for the month rose €826 million or 22 per cent to €4.5 billion.

The latest trade numbers from the Central Statistics Office (CSO) point to another good year for Irish exports.

However, the impact of Brexit and the subsequent weakness in sterling are likely to affect the figures for the second half of the year.

The value of goods exports for the six months to the end of June was €55.4 billion, an increase of €654 million (up 1 per cent) when compared with the equivalent period last year.

Exports of medical and pharmaceutical products rose €298 million, or 12 per cent, to €2.8 billion in June compared with the equivalent month last year.

Exports of electrical machinery, apparatus and appliances increased by 109 per cent, or €266 million, to €509 million over the same comparative period.

Petroleum products

On the downside, exports of petroleum, petroleum products and related materials decreased €85 million or 59 per cent to €60 million.

The European Union accounted for €5.4 billion, or 50 per cent, of total exports in June, of which €1.2 billion, or nearly 25 per cent, went to Belgium.

Antwerp is one of the largest global drug redistribution hubs and receives most of the State's pharma exports which are not destined for the United States.

The US was the main non-EU destination, accounting for 27 per cent, or €2.7 billion, of total exports.

The unadjusted value of goods imports was €5.1 billion, representing a decrease of €709 million (12 per cent) when compared with June last year.

Imports of organic chemicals, meanwhile, increased by €63 million (25 per cent) to €320 million.

Davy economist Conall Mac Coille said that excluding volatile pharmaceuticals, exports were up just 1.2 per cent in the first half of 2016, compared with the 16 per cent rise in 2015.

“This outcome chimes with manufacturing PMI surveys, suggesting sterling’s weakness, uncertainty on Brexit and weaker global manufacturing are weighing on exports,” he said.

“ So we still expect net trade to make a smaller contribution to Irish GDP growth through 2016 and 2017,” he added.

Merrion economist Alan McQuaid said there was very strong growth in Irish merchandise exports in 2015, and 2016 points to another solid performance. “But beyond that in a post Brexit world it is hard to tell how things will play out. One can only speculate as to how Brexit will impact Ireland in the coming months and years, but there is likely to be a negative impact on trade,” he said.