Exports to exceed €170bn, predicts trade body

THE VALUE of exports from the Republic is expected to top €170 billion this year, according to estimates released by one business body yesterday.

However, other figures released yesterday show that the Republic’s services industry contracted last year and suffered particularly badly during last month’s bad weather.

The Irish Exporters’ Association said yesterday that the value of goods and services sold abroad was €161 billion in 2010.

The organisation expects a “significant return to growth” in exports this year as economies in the Republic’s main markets grow.

It estimates that, as a result, the value of exports this year will reach €172.6 billion, an increase of about 7 per cent.

Association chief executive John Whelan,pointed out that export performance depends on growth in world trade. He said that the Organisation for Economic Co-operation and Development (OECD) expects world trade to grow by 8.3 per cent this year, down from 12.3 per cent in 2010.

While the Republic’s insolvent banks, sovereign debt crisis and subsequent bailout have damaged its reputation, Mr Whelan said this has not appeared to have had an impact on the International Financial Services Centre, which is the source of a significant level of exported services.

He pointed out that assets under management at the centre reached €2.48 trillion last year, an increase of 8 per cent on the previous year.

Mr Whelan argued that this demonstrated the centre’s ability to continue to attract investment.

The services industry, which covers all private sector services including both wholesale and retail businesses, contracted last month as the bad weather hit businesses.

The NCB Stockbrokers Purchasing Managers’ Index (PMI) fell to 47.4 in December from 50.8 the previous month. Any reading under 50 signals a contraction.

The weakness in activity and demand fed through to employment trends, with the sector continuing to shed jobs.

The employment index fell from 48.7 to 47.8 last month with the current sequence of declines now extending to 34 months.

A representative panel of about 600 Irish private sector service companies was questioned for the survey.

Most panellists blamed December’s bad weather for the drop in activity.