Ireland's trade surplus rose 3 per cent in March as imports tumbled, according to new data from the Central Statistics Office showed today.
Seasonally adjusted imports were down 14 per cent year-on-year to €3.65 billion while as exports fell 6 per cent to almost €7.6 billion during the same period.
That gave rise to a surplus of €3.9 billion.
This compares to imports of €4.2 billion in February, while exports were €8 billion, leading to a €3.8 billion surplus for the month.
The unadjusted figures show the value of exports in March 8 per cent higher at €8.46 billion, the highest since May 2002, while imports were down 3 per cent to €4.1 billion.
In the first two months of the year, exports have risen 6 per cent to €14.2 billion, driven exports of organic chemicals and medical products which rose by 12 per cent and 10 per cent respectively.
This was offset in part by a 16 per cent fall in exports of electrical machinery.
The US imported 20 per cent more goods from Ireland in the two-month period compared with a year earlier, while exports to Britain rose by 18 per cent.
However, there was a fall in exports to Belgium and Switzerland.
Imports rose 21 per cent in the period as transport equipment imports soared by 120 per cent and petroleum imports were 26 per cent higher.
Davy analyst Conal Mac Coille said te data showed "tentative evidence" that exports picked up in the first quarter.
"Ireland's progress in achieving external balance ahead of other peripheral economies will help the economy to cope with fiscal consolidation," he wrote in a note.
"Ireland's external balance means that the economy requires a smaller adjustment in domestic demand relative to those peripheral economies with deficits."
Mr Mac Coille said the country's export prospects were largely depend on the services sector, which have caught up in size with manufacturing exports. "The robust performance of the Irish services export sector should support export growth in 2011," he said.
Food and drink exports were also hailed as a success story in the first three months of the year.
Paul Kelly, director of Ibec group Food and Drink Industry Ireland said there was strong performance in export markets to the UK and other EU states, which contributed to rise of 15 per cent in food and beverage exports during the three-month period.
"A resurgence in exports shows the resilience of the food sector and its potential for future growth and is underpinned by improved competitiveness at company level," he said, but added that rising commodity prices could put pressure on producers.
