Exports of goods increased 6 per cent in the first half of 2024, reaching a value of more than €107 billion, new figures from the Central Statistics Office (CSO) show, while imports fell 8 per cent.
However, in June alone unadjusted exports dropped by €1.8 billion compared to June, 2023, arriving at €16.6 billion. Imports in June, valued at €11.8 billion, were down €700 million on June, 2023.
Over the six-month period, the changes in both exports and imports, which are compared to the same period in 2023, were driven by trends in the CSO’s chemicals and related products category, which includes pharmaceuticals.
Exports to the US have grown by 23 per cent in the year-to-date, while exports to Britain have fallen by 13 per cent.
“The US is one of Ireland’s largest non-EU trading partners and this increase demonstrates that Ireland’s ambitions and commitment to this important export market are coming to fruition,” said Janette Maxwell, director in tax for advisory firm Grant Thornton.
“The direction of this trading relationship will be observed with heightened interest over the next 12 months, especially with the inauguration of a new US president in January, 2025 and the global changes from a trade perspective that this new leadership may bring.”
Carol Lynch, partner in advisory firm BDO’s customs and international trade services department, said the softening of exports in June when compared to both May, 2024 and June, 2023 may be more significant than the growth achieved over the first half of the year, but more data was needed to identify if it was a “blip” or the start of a new trend.
When seasonally adjusted, exports of goods fell by €330 million compared with May, 2024, the CSO said.
Exports of chemicals and related products grew by €3.7 billion in the first half of this year compared with the same period last year, while imports of these products fell €5.6 billion.
While the value of chemicals and related products exports to Britain is showing “considerable decline” relative to 2023, exports to the US in this category have increased by €5.75 billion, Ms Lynch noted.
“This demonstrates the flexibility of the Irish pharma sector as it pivots away from Covid-era vaccines to other pharmaceutical products,” she said.
In June, 2024 exports of both organic chemicals and medical and pharmaceutical products fell in value. The value of exports of organic chemicals fell by €942 million whereas the fall in medical and pharmaceutical products was about €470 million, or a drop of 7 per cent compared to June, 2023. This represented 39 per cent of total exports.
“Despite the slightly disappointing headline export performance, it is still quite encouraging that traditional exports from the food and beverage sectors to the UK are marginally ahead year-on-year, particularly when increased border friction and continued subdued consumer sentiment in this key market is taken into account,” said Ms Lynch.
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