IRELAND’S TRADE surplus hit a record high in May, topping the €4 billion level for the first time.
Seasonally-adjusted merchandising exports rose 8 per cent in May, provisional figures from the Central Statistics Office (CSO) show. Meanwhile, imports declined by 14 per cent as domestic demand remained subdued. These two factors pushed the trade surplus up by 41 per cent to €4.06 billion.
Minister for Trade and Commerce Billy Kelleher described the trade figures as impressive. The performance is a remarkable achievement given the current economic climate and clearly reflects the growing signs of recovery, he said.
However although the figures for May are positive, the CSO found the level of goods exported in the first four months of the year fell 6 per cent to about €28 billion compared to the same period in 2009. Exports of transport equipment, including aircraft, slumped 83 per cent, while computer equipment fell 42 per cent. On the upside, exports of medical and pharmaceutical products rose 9 per cent. Imports slid 6 per cent year-on-year to € 15.2 billion during the four months.
A breakdown of the destination of Irish goods during the period shows that exports to Belgium fell 10 per cent, while those to Britain declined by 11 per cent. However,exports destined for Saudi Arabia and Australia rose by 58 per cent and 34 per cent respectively.
Alan McQuaid, chief economist with Bloxham stockbrokers, said these figures were encouraging as they showed Irish trade is moving away from its dependency on the US, the UK and the euro zone.
“While US economic indicators have been mixed of late, we still think overall activity in the world’s largest economy will be stronger this year than in 2009, and this should in our view augur well for Irish exports,” Mr McQuaid added.
John Whelan, chief executive of the Irish Exporters’ Association, said that the rise in merchandising exports recorded in May was “very good news”. He noted that services exports, which represent nearly half of all Irish exports, rose 7 per cent in the first quarter of 2010.
