The trade surplus narrowed to €2.6 billion in April as imports surged by 32 per cent and exports declined by 2 per cent.

Seasonally adjusted imports reached €4.9 billion during the month, up from €3.7 billion in March. Exports fell to €7.5 billion from €7.7 billion a month earlier.

In the first three months of the year, exports increased by 9 per cent compared to the same period in 2010, totalling €23.4 billion. This was driven by a rise in the export of medical and pharmaceutical products, which rose 18 per cent year on year. Organic chemicals also rose, gaining 15 per cent compared to 2010.

The economy exported more goods to two of its main export markets, with an additional €541 million, or 11 per cent, sent to the US, and goods sent to the UK rising by €259 million or 9 per cent. France imported an additional 23 per cent, or €255 million, of Irish goods.

In the same period, exports to Spain declined by 21 per cent, or €194 million.

National Irish Bank chief economist Dr Ronnie O'Toole described the strength in UK exports as "surprising and encouraging".

"While Irish exporters have been hit by the slowdown in retail sales in the UK in recent months, the very high rate of British inflation (4.5 per cent) is a positive, as it is translating into higher prices and margins for Irish produce," he said. "Around half of exports from indigenous Irish exports is destined for the UK, and around nine out of 10 Irish companies sell some of their produce to the UK, so it remains a critical market for Ireland."

Meanwhile, imports were down by 12 per cent, to €12.6 billion. Imports of petroleum products were up by 26 per cent, or €275 million, while transport equipment saw imports rise by 19 per cent or €167 million. Car imports increased by 36 per cent.

Minister for Jobs, Enterprise and Innovation Richard Bruton welcomed the trade figures.

“A strong export performance will be crucial in driving the recovery in the wider Irish economy. Today’s figures, the latest in a growing body of evidence of high levels of performance in manufacturing and exports, show that an export-led recovery is becoming a real possibility. This is particularly welcome at a time when we are receiving mixed news about the global economy," he said.

“The fact that our exports to target markets in Brazil, Russia and India are showing substantial increases is also very good news. However we must not become complacent about our export performance, as aspects of the figures show."

Business group Ibec said the figures showed the crucial contribution trade is making to economic recovery.

"Exports are still growing year-on-year and despite higher imports, Ireland recorded a healthy trade surplus of nearly €14 billion in the first four months of the year. Higher imports are partly explained by rising input needs of the manufacturing sector, which in many cases support exports at a later date," said Ibec's head of trade Pat Ivory.

"The highly open nature of the Irish economy means that exports are making a substantially higher contribution to GDP and economic recovery than in most other countries. For 2011, the European Commission forecasts that exports will add about 6 per cent to growth in Ireland. Even in Germany, with its strong manufacturing sector, exports will only add 3 per cent, while in the euro area as the contribution will be about 2.5 per cent."