Ireland's trade position deteriorated in April due to a sharp fall in exports which could translate into weaker growth for the economy, new figures show.
External trade data for April released by the Central Statistics Office shows that exports dropped 11 per cent in value compared with April 2005, while imports were 8 per cent lower.
Economists blamed the weak export performance on the loss of competitiveness after many years of inflation in wages and other business costs.
In volume terms exports rose only 3 per cent in the first quarter of the year while imports soared 13 per cent due to strong growth in consumer spending and business investment.
According to Rossa White, economist with Davy stockbrokers the weak data will have an negative impact on economic growth.
"No data are yet available for services but we reckon the drag from net trade will amount to at least two percentage points on GNP," Mr White said in a research note today.
As a result of the anaemic trade figures GNP is unlikely to exceeded 5.5 per cent in the first quarter. National Accounts data for the first quarter are due out in two weeks.