Trade declines in December

Trade fell in December as both exports and imports declined during the month, new figures from the Central Statistics Office showed today.

The data showed exports decreased 2 per cent compared to the previous month and imports slipped 5 per cent.

Imports totalled €3.4 billion in December, compared to €3.6 billion in November 2009. Meanwhile, exports worth €6.1 billion left the country during the same month, leaving a surplus of €2.7 billion.

On an unadjusted basis, the value of exports in December fell 11 per cent compared to the same month a year earlier, while imports fell 14 per cent.

The preliminary figures for December showed a fall in chemical exports to the USA, while Ireland imported less machinery from most markets, apart from the US.

Bloxham economist Alan McQuaid described the trade surplus as "healthy" but noted it was still the the second lowest surplus last year.

"The unadjusted trade surplus amounted to €2.4 billion, €182 million lower than the positive balance of €2.6 billion posted in December 2008. It was also the lowest trade surplus since August 2008, suggesting that the external side of the economy may be running into new roadblocks," he said.

"But, we think this is just temporary, and expect renewed upward momentum in the coming months."

Between January and November exports fell 3 per cent to €77.5 billion, with the largest percentage decrease experienced in the metalliferous ores sector, which fell 31 per cent compared to a year earlier. Industrial and electrical machinery were also hit, declining 1 per cent each, and exports of computer equipment fell 29 per cent.

However, exports of medical and pharmaceutical products rose by 18 per cent, and other transport equipment saw a 129 per cent increase.

Ireland exported fewer goods to Britain and Northern Ireland over the 11 month period, which slipped 14 per cent and 20 per cent respectively. However, there were also declines in the market to Germany, which fell 21 per cent, and the Philippines, where exports declined 67 per cent.

In contrast, the United States imported 9 per cent more Irish goods, while the Belgian export market rose 22 per cent. There was also growth seen in the market to Brazil, where imports from Ireland gained 20 per cent.

Over the same 11 months, imports showed a significant deline, falling 23 per cent to €41.1 billion. The weakness in the car industry was evident in a 75 per cent fall in the number of road vehicles imported into the country, while petroleum products declined by 36 per cent. Meanwhile, imports of iron and steel were down 63 per compared with a year earlier, and computer equipment also fell, declining 46 per cent.