Exports decline sharply

Irish exports declined in February to their lowest level in almost a year after hitting a record high in January, new figures show.

The monthly numbers released yesterday by the Central Statistics Office show that seasonally adjusted exports were worth €7.13 billion in February, down 13 per cent on the prior month. This is the lowest value since the €7.04 billion recorded in March 2005.

Imports meanwhile increased 3 per cent to €5.07 billion.

As a result, the seasonally adjusted surplus for February slipped 36 per cent from January to its lowest level in almost six years. The figure recorded was €2.06 billion, down from €3.3 billion in January. January's figure was the highest surplus since March 2004.

A detailed breakdown of the unadjusted January figures - these always lag the provisional numbers by a month - show that the 11 per cent gain in exports was helped by healthy gains in exports of organic chemicals.

Goods leaving Ireland for Belgium increased by 44 per cent, while exports to Germany increased 6.7 per cent, from the same month a year earlier. Meanwhile exports to the UK and the US declined.

Imports rose 11 per cent in January, boosted by a strong intake in computer equipment. Goods entering Ireland from China increased 53 per cent, while UK imports were up 11 per cent.

Experts are forecasting a modest recovery in export growth this year.

"The generally positive outlook for demand in most of our trading partners points to relatively strong export market growth," said Alan McQuaid, chief economist at Bloxham.

He also said that the absence of adverse exchange rate movements will remove some of the competitive pressures which hurt the export market at the beginning of 2005.

"Overall the prospects for this year are for a somewhat better performance by merchandise exports but still a muted one by historical standards," said Mr McQuaid, who is forecasting a 3.5 per cent increase in exports this year.