Business

Irish goods exports rise to €53bn in first quarter as pharma trade recovers

Latest trade numbers point to modest recovery in pharma exports after 2023 slump

Pharma and medical device volumes account for two-thirds of the State’s export trade. Photograph: iStock

Eoin Burke-Kennedy
Thu May 16 2024 - 12:36

The value of Irish goods exports rose by €2.3 billion to €53.2 billion in the first quarter of 2024 compared with the same period last year, according to the Central Statistics Office’s (CSO) latest trade numbers.

The improvement was primarily down to increased pharma and medical device volumes which account for two-thirds of the State’s export trade.

Exports of chemicals and related products, which encompasses chemical exports as well as medical and pharmaceutical products, rose to €35.5 billion for the quarter, up from €33.8 billion last year.

Irish exports contracted last year on the back of a downturn in pharma exports, which had surged during the pandemic. This in turn triggered a contraction in headline GDP (gross domestic product) and technical recession, defined as back-to-back quarters of negative growth.

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The latest trade figures indicate pharma volumes have rebounded from last year’s slump.

Unadjusted goods imports were €31.2 billion for the first three months of the year, which was more than €3.3 billion lower than the same period last year.

The CSO said imports from Britain fell by 34 per cent to €4.2 billion in the first quarter compared with the same period of 2023. The largest decreases were recorded in the imports of chemicals and related products, and mineral fuels.

This was put down to the price of effects of lower fuel prices internationally rather than declining trade volumes.

The Republic imports most of its energy and fuel requirements from Britain. Exports to Britain rose by 3 per cent to €4.4 billion in the first quarter, the figures showed.

The EU accounted for €6.9 billion (37 per cent) of total goods exports in March, of which €1.8 billion went to Germany, €1.8 billion went to Belgium and €1.2 million went to the Netherlands.

The US was the main non-EU destination, accounting for €5.2 billion (28 per cent) of total exports in March.

“The agrifood sector performed exceptionally well, with exports reaching €341 million in March to the UK, a 10 per cent increase showcasing the sector’s resilience and strategic response to new trading conditions. Exports to chemical sector in UK also showed recovery, with exports increasing from €318 million in February to €739 million in March,” BDO customs and international trade partner Carol Lynch said.

“Signs of global trade recovery are also evident, with exports to the US rising by €1 billion and to China by just over €300 million in March, indicating a broader improvement in the global economic health,” she added.

Eoin Burke-Kennedy

Eoin Burke-Kennedy

Eoin Burke-Kennedy is Economics Correspondent of The Irish Times

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