Irish exports increased in February but the rate of growth continued to lag behind imports, according to figures published yesterday by the Central Statistics Office. The latest data also showed a decline in exports of some high-tech products on an annual basis.

Adjusted for seasonal patterns, the value of exports rose €111 million to €7.89 billion in February. Imports were €10 million weaker at €5.45 billion.

Car purchases weakened in February pushing the trade surplus in the month up to €2.4 billion, up from January's surplus of €2.3 billion. The monthly rise in exports during February, 1 per cent, pushed the annualised growth rate up to 5 per cent but this remains significantly lower than the 12 per cent increase recorded for imports. Most export growth continues to be driven by the high technology and largely foreign-owned sector of manufacturing.

In value terms the annual rise in exports, some €382 million, was lower than the €563 million increase recorded for organic chemical exports and this reflected falls in exports of other categories. Between February 2006 and February 2007 exports of medical and pharmaceutical products fell from €1.32 billion to €1.13 billion, while exports of computer products (office machines and automatic data processing machines in CSO terminology) were down from €1.13 billion in February 2006 to just over €1 billion in February this year. Exports by destination are available for January and confirm that exports to the US - where most Irish multinationals are resident - outperformed exports to the EU, which actually fell. Compared to a 25 per cent rise for the US, exports to the EU fell by 1.8 per cent.

The strength in annual import growth reflected the fact that, while slightly down on January levels, imports of transport equipment in February were €454 million higher than a year before, reflecting largely increased imports of aircraft. Revised figures from the CSO confirm that last year's trade surplus was the lowest since 2000.

Bloxham economist Alan McQuaid said higher inflation and an appreciating euro had contributed to a disappointing export performance last year. "It is hard to see this situation improving much in the short-term," he said.