Irish Exports Highest Ever

The value of Irish Exports were the highest ever recorded last year, reaching an unprecedented €161 billion.

The Irish Exporters Association's (IEA) end of year review for 2010 said that overall exports of goods and services grew by 6.7% during the year, with the largest increase in the manufacturing and agri-food sectors.

The IEA said it was projecting exports of goods to grow by 5% in 2011 with the services sector forecast to grow by 10% giving an overall growth forecast for the year 2011 of 7.2% and pushing Ireland’s total exports to a new high of €172.6 billion.

However, according to Mr John Whelan, Chief Executive of the association, while the growth in 2010 and anticipated growth in 2011 was welcome, the IEA feared it would not be enough to ensure economic growth targets laid out in the IMF four year plan will be met.

The significant growth in Irish exports resulted from an economic bounce back in many international markets. Exports to North America were particularly strong with sales to the USA up by 18% in the year, and sales to Canada up by 27%. The emerging markets of Brazil, Russia, India, and China (BRIC countries) showed an increase of 12%, while Germany, the largest of the EU markets, provided a much needed boost to eurozone exports with Irish exports increasing by 42%.

Mr Whelan added that Ireland's manufacturing and agri-food sectors managed to capitalise on the resurgent international markets by repositioning themselves, shedding costs, moving up the value chain, and exploiting the renewed growth.

The Irish Farmers Association, responsible for the agri-foood sector said producer prices should remain positive, with international demand continuing to aid the recovery evident last year.

The association also warned however that a number of issues such as the weakening of the Euro against the Dollar, increased global demand for inputs due to rising product prices, restrictions in the supply of fertiliser, and increased domestic taxes on energy inputs, could contribute to an increase in overall farm costs during the coming year.

IFA Chief Economist Rowena Dwyer said: “A market development which looks likely to continue in 2011 is the move towards providing guarantees on producer prices through market instruments, including contracts, forward selling etc. This is an attempt to minimise the volatility in farm incomes that has been prevalent in the sector over the last five years. However, similar instruments are not currently available for minimising input cost volatility.”

(DW)