Record export figures of more than £6 billion (#7.62 billion) in June indicate economic growth is continuing to exceed the most optimistic expectations.
Statistics released yesterday showed the value of exports reached £6.12 billion during the month, a rise of almost £1 billion on the £5.22 billion recorded in May.
This is by far the highest figure on record for a single month and - as the social partners meet today to consider the impact of inflation on the terms of the Programme for Prosperity and Fairness - suggests international competitiveness is being maintained despite rising prices.
The Irish Congress of Trade Unions is seeking additional pay increases to compensate for the effects of rising prices but the employers' organisation, IBEC, says this would seriously undermine the ability of companies to sell their goods.
Exports for the first six months of the year were up 26 per cent to a record £30.9 billion, while imports rose 25 per cent to £20.68 billion. Imports in June amounted to £3.62 billion.
The Minister of State for International Trade, Mr Tom Kitt, said the fact that the value of exports for the first half of 2000 exceeded exports for the full year of 1996 underlined the State's progress as a trading nation.
According to Dr Dan McLaughlin, chief economist at ABN Amro, the figures confirm that the export boom is accelerating and that the economy is growing by around 13 per cent a year.
The Economic and Social Research Institute's estimate for export growth this year is just 14 per cent, underpinning an overall growth forecast of just below 10 per cent.
But the buoyancy of the latest statistics suggests growth will be much higher, largely because of huge productivity increases in the chemical and high-tech sectors.
Dr McLaughlin said the figures demonstrated that inflation was not yet a problem for competitiveness, despite its social and political consequences. The low level of the euro has added sharply to the cost of imports, with almost 78 per cent coming from outside the euro zone.
However, exporters have not passed on the bulk of these additional costs because they are being offset by increased competitiveness. The fall in the value of the euro appears to have added far more to competitiveness than inflation has taken away.
Exports to the euro zone accounted for only 36 per cent of the total, allowing exporters to the US, UK and elsewhere to take advantage of the weak currency. Exports to the US rose almost 60 per cent to almost £5.8 billion, overtaking Germany as the Republic's second-largest export market.
Exports to the US in June came to £1.4 billion, almost £230 million higher than exports to the UK. However, the UK remained the largest trading partner for the first half of the year.
Mr Kitt welcomed the continuing strength of the performance. "A major factor in Ireland's economic performance has been outstanding levels of export growth. These trade figures are another impressive demonstration of the rate of progress continuing to be made by Irish-based industry in the global trading marketplace of the 21st century."
The trade surplus, or balance of exports over imports, totalled nearly £10.3 billion in the first six months, 28 per cent higher than the same period last year.