Irish trade surplus among top in EU

Ireland recorded the second highest trade surplus in the EU in the first nine months of 2010, new data showed today.

According to the statistical office of the European Union Eurostat, only Germany ranked higher for the period, recording a €127.6 billion surplus. Coming in behind Ireland was the Netherlands, with a €34 billion surplus and Belgium, at €15.8 billion.

Over the nine months, Irish exports rose by 4 per cent to €73.3 billion, and imports fell by 1 per cent to €37.1 billion, resulting in a €36.2 billion surplus. That was a rise of €3.2 billion compared to the same period in 2009.

In contrast, the United Kingdom had the largest deficit, at €94.7 billion, while France had a shortfall of €50.3 billion.

In a separate release today, Bank of Ireland chief economist Dr Dan McLaughlin said domestic spending was is falling and is expected to contract again in 2011.

“Domestic demand is again forecast to contract in 2011, albeit at a slower pace of 2 per cent against a 6 per cent fall in 2010.

“Capital spending remains the main culprit for the fall in domestic demand, plunging an annual 31 per cent with building and construction down 32 per cent and spending on machinery declining by 27 per cent,” he said.

“Both exports and inventories look set to offset the decline in domestic spending with the result that we expect GDP to record positive growth in 2011. An export led recovery was widely predicted but the combination of strong growth in global demand, a weaker euro and substantial gains in Irish competitiveness have generated much stronger growth in exports than expected, and we forecast that trend to continue this year, with exports projected to grow by 9 per cent in volume terms.”

According to Eurostat, initial estimates for the euro area trade balance with the rest of the world indicated a deficit of €400 million in November 2010. In 2009, that figure was a surplus of €3.1 billion. Seasonally adjusted exports rose by 0.2 per cent month on month, while imports gained 4.4 per cent compared to October.