The Irish Exporters' Association says total exports in 2003 were down 8% on the previous year, with a drop of €10 billion in sales.
The lost exports came entirely from merchandising exporters, who saw a decline of 12%, but service exporters reported growth of 5%, mainly coming from sales of software over the internet.
Chief executive John Whelan said 2003 had been the most difficult year for exporters in over a decade, with the continued strength of the euro hitting competitiveness.
He said the main risk to competitiveness had now shifted from wage and service inflation to exchange rate movements, as trade with non-euro countries accounts for 60% of Irish exports.
But he said there were clear signs of recovery in the second half of 2003, and growth of 6% was forecast for 2004.
The IEA review showed that export sales in the computer sector fell by 30%, though a return to growth is expected this year.
Exports of chemicals and pharmaceuticals dropped for the first time in a decade, with a 1% fall.
The food and drink sector recorded a 2% decline, while furniture exports were down 19% and textiles down 13%.
