Current account surplus rises to €255m

Exports continued to rise in the third quarter, leading to a current account surplus of €255 million in the three-month period, new data showed today.

This compares with a deficit of €1.1 billion in the second quarter of 2010, and a €653 million shortfall in the third quarter of 2009. It is the largest quarterly surplus recorded since 2003.

Merchandise exports rose €3.2 billion year on year to €21.6 billion, while imports rose €1.2 billion to €11.5 billion, leading to a surplus of €10 billion.

Exports of services, meanwhile, rose €2.1 billion year on year to €18.7 billion, with imports €2.6 billion higher at €20.3 billion. This was partly due to increased exports of computer and business services, and high royalty payments and business service imports.

Forfás chief executive Martin Shanahan said the figures proved an export-led growth strategy is right to drive recovery in the domestic economy.

“The fact that goods and services exports have increased by 15.1 per cent compared to the third quarter of 2009 and that overall good and services exports have now consistently recorded strong annual increases from 2009 indicates that an export focused approach to economic growth is the key driver to ensure Ireland’s economic recovery," he said.

“A continued increase in export growth will lead to sustainable direct job opportunities above those provided by serving the domestic market, growth in revenues for firms beyond what the domestic economy can provide and increased opportunities for locally trading businesses, creating additional employment and enhancing tax yields for government."

The research also showed investment income earned abroad was €15.2 billion for the period, a rise of almost €2.6 billion year on year. Payments to foreign investors, meanwhile, rose €2.9 billion to €22.7 billion.

Outward direct investment amounted to €2.4 billion, mainly from non-IFSC sources.