New Central Statistics Office figures show further evidence of Ireland's export-led recovery after the country recorded its biggest ever trade surplus last year.
Exports of goods outstripped imports by €44.7 billion, according the latest figures from the Central Statistics Office. Chemicals and pharmaceuticals are now the country's biggest export.
The CSO figures released this morning show that exports for 2011 were up 4% from 2010 to €92.9 billion, while imports were €48.2 billion up 5%. This resulted in a trade surplus of €44.7 billion - up 3% and the highest annual surplus on record.
The trade surplus has increased steadily over the last five years, rising from €25.7 billion in 2007 to €44.7 billion in 2011.
Exports have fluctuated over the same period, from €89.2 billion in 2007, dropping to €84.2 billion in 2009 and rising to today's figure of €92.9 billion for 2011.
Imports have fallen from a high of €63.5 billion in 2007 to a low of just over €45 billion in 2009, recovering slightly to €48.2 billion for 2011.
The Minister for Enterprise, Richard Bruton, welcomed the figures today.
"This Government have consistently pointed out that a strong export performance will be crucial to achieving the economic and jobs recovery we are all working so hard for. The strong performance of our exports in 2011 confirms the potential for a wider recovery in the economy," he said. He made his comments during a trade visit to San Francisco, he said
He noted that exports to key target countries were up significantly - Brazil by 20%, Russia, by 37% and India 34%, compared to 2010
IEA says CSO figures good start to the year
The Irish Exporters Association described the figures as a 'good start to export year' and described it as a 'strong endorsement of the increasing competitiveness of our exports'.
This is in addition to the boost to competitiveness from the 2% fall in average wages last year, the IEA noted.
Alan McQuaid, chief economist with Bloxham Stockbrokers noted that today's figures were much better than expected. He said the seasonally-adjusted surplus picked up in January to €3.830 billion from a revised €3.539 billion in December.
''The January data were very positive and despite the difficult global economic backdrop suggest that yet another record trade surplus could be on the cards this year," he said.
But Conal MacCoille, chief economist at Davy, struck a cautious note, warning that the trade data come with "severe health warnings".
The data, he said, are a poor guide to the final goods export contribution to GDP, particularly relating to distortions from the pharmaceutical sector where high value goods are imported and then re-exported with relatively small value added.
"We can infer little from today's trade data release about the strength of the export sector ahead of next week's GDP data for Q4," he concluded.
The CSO figures show that preliminary estimates for January 2012 show exports of €7.684 billion, up 10% on the same time last year. Imports were up 3% on January 2011 at €4.439 billion. This resulted in a 20% increase in the trade surplus to €3.246 billion for January 2012 compared with January 2011
Exports of medical and pharmaceutical products increased by 9% to €26.4 billion, organic chemicals by 4% to €19.8 billion. Meat and dairy also recorded increases. Transport equipment (including aircraft) increased by 89% to €455m. There was a 10% fall in the export of computer equipment to just over €4 billion.
Imports of medical and pharmaceutical products increased by 26% €.4.4 billion, petrol imports increased by 21% to €5.1 billion and organic chemicals increased by 20% to €2.5 billion.
The figures show a rise of 3% in the value of goods exported to the US, along with a fall of 8% in the value of goods imported. The US, (23%) Belgium (15%) Great Britain (14%) and Germany (7%) were Ireland's main export markets.
