'Difficult 2006' for exports from Ireland

A strong euro coupled with rising domestic costs and competition from Chinese manufacturers resulted in flat manufacturing exports…

A strong euro coupled with rising domestic costs and competition from Chinese manufacturers resulted in flat manufacturing exports from Ireland last year, according to a report published today.

The Irish Exporters Association's review of 2006 said overall growth in manufacturing exports from Ireland was flat last year, although services exports rose by 15.6 per cent.

The report also showed that Irish-owned exporters saw overseas sales rise 10.2 per cent last year to €11.8 billion.

Foreign firms saw their exports increase by 5 per cent. Foreign-owned merchandise exporters saw a drop of 1 per cent in the value of goods being sent overseas. Foreign-owned firms account for 91 per cent of exports over.

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There were good performances from certain sectors, in particular food and drink sales, which rose by with 8 per cent and 14 per cent respectively. Exports of C&C's Magners cider accounted for much of the rise in drink exports.

Exports to established markets such as Germany, France and The Netherlands showed little or no growth and exports to the United Kingdom were flat. Exporters to Japan saw a 14 per cent fall in the value of goods sent to that destination, and exports to China fell 10 per cent.

The picture for emerging economies was brighter with exports to the 10 new EU States rising 12 per cent and a growth in exports to South Africa and the Middle East.