The value of Irish exports decreased by 15 per cent to €7.09 billion in the year to March, according to figures released by the Central Statistics Office (CSO).

According to a seasonally adjusted month-on-month comparison, the value of exports was down 5 per cent in March, compared with February. Over the year, the value of imports dropped 12 per cent to €4.86 billion.

For the first two months of the year, exports of computer equipment declined by 15 per cent to €1.67 billion when compared with the same period in 2007.

"The significant fall in exports reflects the severe difficulties faced by manufacturers selling into a weaker global economy with a strong currency; the fall in imports points to slower domestic demand," said Ibec chief economist David Croughan.

The fall in March was no doubt affected by the distortion of the Easter break falling that month, "but it also coincided with the euro hitting almost 80 pence against sterling and a dollar rate of $1.58", said Mr Croughan.

He added "trading conditions will continue to be very difficult over the coming months. Hopefully, the stronger exchange rate will help to reduce inflation in the second half of the year, but high oil prices will offset some of this advantage."

Over the period, exports of chemical products grew 63 per cent to €563 million while medical and pharmaceutical exports grew 8 per cent to €2.59 billion.

The seasonally adjusted trade surplus in February was €2.23 billion, as against €2.04 billion in February and €1.65 billion in January.

Exports to the United States grew by 5 per cent for the first two months of the year to €2.8 billion, a rise of 5 per cent when compared with the same period in 2007. Exports to China and Hong Kong grew by 60 per cent over the same period to €436 million.