A dip in exports last month has been attributed to increasing competition from east European and Asian firms and difficult conditions in the international markets.
Figures from the Central Statistics Office show that merchandise trade values for exports fell 4 per cent to €6.77 billion in March from €7.04 billion in February, while the value of imports fell 8 per cent to €4.07 billion in the same period.
Bloxham Stockbrokers economist Alan McQuaid said that the weaker export performance was likely to be a key factor in keeping real economic growth below 5 per cent this year. The export figures reflected a market in which firms in competing economies could charge lower prices because of lower wage costs, he said.
Detailed figures for January and February show a rise in exports to €13.02 billion from €12.98 billion in 2004 as the value of imports in the same period grew 9 per cent to €8.55 billion.
Exports of medical of pharmaceutical products grew by 12 per cent, although Goodbody Stockbrokers economist Philip O'Sullivan said that a 10 per cent fall in exports of computer equipment was some cause for concern.
Mr O'Sullivan said exports fell to nine of the 10 new EU states. "With exports to these countries representing under 1 per cent of total exports, the window of opportunity remains wide open for market share gains in eastern Europe."
