Trade surplus rises to highest balance this year

Seasonally adjusted exports rose by 23 per cent in August to €7.97 billion, according to new figures published by the Central Statistics Office.

Coupled with a 1 per cent or €29 million monthly rise in imports to €4.63 billion, the trade surplus rose by €1.43 billion to €3.34 billion from July, the highest balance this year.

The latest figures also show an increase of €1.43 billion on the revised balance of €1.90 billion posted in July.

The value of exports rose by €409 million or nearly 6 per cent compared to August 2013 to €7.39 billion. The main driver for the rise was a 31.2 per cent rise in the exports of organic chemicals.

A comparison of the non-seasonally adjusted exports between January to August 2014 and the same period a year earlier shows that there was a 1 per cent increase in exports.

The EU accounted for more than half of all exports in August, while the US was the main non-EU destination for Irish goods.

The figures show a sharp rise in imports of machinery specialised for particular industries; up 266 per cent to €194 million from August 2013 to August 2013.

Comparing non-seasonally adjusted imports between January to August 2014 and January to the same period a year earlier shows an increase of €2.16 billion or 7 per cent.

The EU accounted for 62 per cent of the value of imports, with 30 per cent coming from Great Britain. The US and China were the main sources of non-EU imports.

Commenting on the figures, Minister for Enterprise Richard Bruton said the Government would continue to put measures in place to support exporters.

“The figures are very encouraging, with goods exports showing impressive year-on-year and month-on-month growth. What is particularly encouraging is that they appear to be driven by sectors which we have spefically targeted as part of our plan, including the pharma and manufacturing areas,” he said.

According to Alan McQuaid, an economist with Merrion Stockbrokers, exports and services will likely rise by almost 8 per cent for 2014 as a whole in volume terms, even allowing for some slowdown in the second half of the year.

“Although not as strong as 2014, we still see Irish exports of goods and services increasing by 5 per cent in volume terms next year,” he said.