The value of exports to countries outside the EU fell by 8 per cent in August compared to the same month of 2001, according to seasonally adjusted trade figures released by the Central Statistics Office yesterday.

The decline gives rise to some concern about the momentum behind growth in the Republic. Exports are viewed as one of the healthiest aspects of the economy, and one of the key drivers of economic expansion.

The Republic exported goods worth €2.6 billion to countries outside the EU in August, compared to a value of €2.83 billion in July. The 9.7 per cent fall, in what is traditionally a volatile monthly series, brings exports back to levels seen in June.

The value of imports from non-EU states increased by 13.8 per cent to €1.7 billion between July and August, the highest level seen for four months. The annual rise was 8 per cent.

Unadjusted numbers show that goods worth €22.8 billion were exported to non-EU countries during the first eight months of the year, down 2 per cent on the same period in 2001.

Within this, sharp declines came in electrical machinery and computers, down 32 per cent and 13 per cent respectively. Exports of medical and pharmaceutical products grew by 54 per cent to €2.4 billion

Imports over the first eight months were 8 per cent down on 2001 at almost €13 billion.

The computer sector saw a fall of 21 per cent while imports of telecommunications equipment decreased by 42 per cent.

The most substantial rise was seen in imports of organic chemicals, which grew by 91 per cent year on year to slightly more than €1 billion.