Exports remain stable in February

The value of Irish exports remained stable in February, with a trade surplus of more than €3.4 billion, the Central Statistics Office (CSO) said today.

However, despite being described as a "solid" performance, the trade surplus was still slightly lower than the €3.6 billion recorded in the previous month, the figures showed.

Seasonally adjusted imports rose 3 per cent over the month to €3.5 billion, while exports totalled just under €7 billion.

Provisional figures for January, meanwhile, showed that exports fell 3 per cent from €6.9 billion in 2009 to €6.7 billion over the month.

The value of goods exported to Britain fell 13 per cent compared to a year earlier, while a decrease of 8 per cent was also noted in exports to Belgium. The US imported 9 per cent more Irish goods, while exports to China grew by 30 per cent.

One of the most significant decreases was seen in the export of computer equipment, which fell 49 per cent compared to the same month a year earlier, while organic chemicals decreased 10 per cent and other transport equipment, including aircraft, fell 72 per cent.

However, exports of medical and pharmaceutical products increased by 18 per cent, and metalliferous ores showed a 72 per cent rise.

In January, imports fell 16 per cent to €3.3 million, fuelled by a fall-off in computer and other transport equipment, and power generating machinery.

Rises were recorded in the import of petroleum, and medical and pharmaceutical products.

There was a decrease of 44 per cent in good imported from the US, and a 14 per cent fall in British imports. Goods imported from China fell 41 per cent in January, while Norway, Switzerland and Denmark all imported more goods into the country.

"While exports in January and February were weaker than in the same months of 2009, they are significantly stronger than in the last quarter of 2009," said Dr Ronnie O'Toole, chief economist with National Irish Bank.

A pick-up in the US economy is considered good news for the Irish exports, and the economy in general as the general view is that recovery will be export-led.

Bloxham chief economist Alan McQuaid said a lot would depend on the performance of sterling, particularly for indigenous exporters.

"Despite ongoing uncertainties about the political make-up in Britain post the May 6th general election, we are positive on the prospects for the pound this year, with the combination of an improving UK economy and continuing concerns regarding the fiscal woes of euro zone 'peripheral' members, leading to appreciation of sterling versus the euro," he wrote in a note.

"We are still looking for the pound to be trading at 0.80 against the single currency come year-end. We are also encouraged by the latest industrial output figures which showed the 'indigenous' side posting its first year-on-year increase since the final quarter of 2007, suggesting that cost adjustments made over the past 12 months or so are starting to bear fruit. Meanwhile, the most recent data from the Dublin Port Company have been positive too, which is good news as regards the overall external trade picture this year."

The Minister for Trade and Commerce Billy Kelleher said the figures were "encouraging" but said Ireland must be mindful of the challenges it faces.

"These trends show the resilience of Irish exporters in difficult times and they reinforce the Government's work in promoting an export-led recovery," he said.

"Net exports are a significant contributor to gross domestic product growth and our continued strong export performance is a key factor in contributing to our economic recovery."

However, the current figures measure only imports and exports of good; Dr O'Toole said services exports, which account for half of Irish exports, are likely to post stronger growth than goods in 2010.