CSO figures reveal decline in import and export trade

TRADE DECLINED in December as exports and imports fell during the month, new figures from the Central Statistics Office showed yesterday.

The data showed exports reduced 2 per cent compared with the previous month and imports slipped 5 per cent.

Imports totalled €3.4 billion in December, compared to €3.6 billion in November 2009. Exports worth €6.1 billion left the country during the same month, leaving a surplus of €2.7 billion.

On an unadjusted basis, the value of exports in December fell 11 per cent compared to the same month a year earlier, while imports fell 14 per cent.

The preliminary figures for December showed a fall in chemical exports to the USA, while the Republic imported less machinery from most markets.

Between January and November exports fell 3 per cent to €77.5 billion, with the largest percentage reduction occurring in the metalliferous ores sector, which fell 31 per cent compared to a year earlier.

Bloxham economist Alan McQuaid described the trade surplus as “healthy”.

“The unadjusted trade surplus amounted to €2.4 billion, €182 million lower than the positive balance of €2.6 billion posted in December 2008. It was also the lowest trade surplus since August 2008, suggesting the external side of the economy may be running into new roadblocks.” he said.

“But we think this is just temporary, and expect renewed upward momentum in the coming months.”

The Irish Exporters Association (IEA) was more cautious, calling for a new export strategy to offset sterling weakness and to help exporters move aggressively into new markets.

“The Bric countries offer huge opportunities for a wide range of Irish exporters. But for a small and medium sized business to tackle the Indian or Chinese market is just too difficult – they don’t have the resources,” said IEA chief executive John Whelan.

Meanwhile, trade at Dublin Port rose for the second month in a row in January, sparking some optimism for the economy.

Overall throughput rose 1.4 per cent to 2.13 million tonnes during the month compared with January 2009, while exports rose 7.3 per cent year on year to 814,000 tonnes. Imports were down, falling 2 per cent to 1.317 million tonnes.

Dublin Port activity is considered by economists to be a key barometer of the Irish economy.