Ireland's trade surplus was the third highest in the European Union in the first half of the year, new data showed today.

The figures from Eurostat put Ireland after Germany and the Netherlands as the country's surplus climbed to €21.3 billion. This was fuelled by a 7 per cent rise in exports over the period, to €46.2 billion, while imports were 9 per cent higher at €24.9 billion.

In comparison, the UK reported a deficit of £56 billion, the largest in the EU, followed by France at €45 billion.

The other so-called PIIGS nations all reported large deficits, with Spain at €23.8 billion, Italy recording a €22.1 billion trade deficit, and Greece at €9.5 billion. Portugal's trade deficit over the six months was €8.6 billion.

In the wider euro area, exports rose in July, advancing a seasonally adjusted 2 per cent from June, when they fell 5 per cent. Imports increased 1.9 per cent.

Labour costs rose 3.6 per cent in the second quarter from a year earlier, the biggest jump since 2008, separate data showed.

The European Central Bank last week kept its key interest rate at 1.5 per cent and lowered its economic forecasts for this year and next. In the US, growth is also cooling.

"The ECB is now markedly more worried about the marked slowdown in euro-zone growth and weakened growth outlook," said Howard Archer, chief European economist at IHS Global Insight in London. Still, "we suspect that the bank will be reluctant to cut interest rates, in the near term at least, unless the euro zone actually goes back into recession".

Additional reporting: Reuters