The economy's export performance improved in March, according to trade figures published yesterday. Exports rose to €7.46 billion, according to Central Statistics Office (CSO) data, up 4.8 per cent on February.
This followed a 14 per cent drop to €7.1 billion in February from €8.2 billion in January.
First-quarter trends reflect a sharp fall in exports of high technology chemical and computer products in February, followed by a recovery in March.
In the quarter as a whole, exports were up 6.4 per cent on the same period of year. Imports rose by 12.6 per cent year-on-year in the quarter, with growth strong across a range of industrial and consumer goods.
The seasonally adjusted surplus was €2.32 billion in March, up from €2.04 billion in February but down sharply on the €3.31 billion recorded in January.
A detailed breakdown of the figures - available for January and February - shows that a merchandise deficit would have been recorded but for the largely foreign-owned chemicals sector: Chemicals exports exceeded imports by €5.14 billion in January and February combined, exceeding the total trade surplus for the period of €4.2 billion.
"Following a weak period for merchandise exports over the pervious three years, there are early indications that this trend may be turning in 2006," Goodbody stockbrockers economist Dermot O'Leary, said yesterday.
The Minister of State at the Department of Enterprise, Trade and Employment Michael Ahern also welcomed the figures and said that Irish exporters were "performing well in a difficult trading environment caused by rising oil prices".
But the outlook for the euro could harm exports in the coming year, Alan McQuaid of Bloxham stockbrokers warned yesterday .
"With the euro set to make healthy gains against both the greenback and sterling this year and next, the outlook for Irish exports in 2006 and 2007 is none too bright in our view," he said.
"Indeed, we expect exports, which were for so long the strongest link in the Irish economy, to be the weakest link over the next couple of years".
