The Irish Exporters Association says the value of exports last year rose only marginally compared with 2003 after what it described as a bleak final quarter.
In its review of 2004, the association said there was a promising start to the year, but the rapid fall in the US dollar, along with higher fuel and commodity prices, took their toll in the final three months. The value of goods exported in the last three months of the year was down 4% compared with a year earlier.
The IEA says the outlook for next year is uncertain, because of fears about the US economy, the dollar, energy costs and weak European markets.
Total goods exports for the year were €83.3 billion, just 1.5% above the 2003 total and well below the record 2002 figure of €93.8 billion. Services fared better, with a 7% rise to just under €36 billion, giving a total rise of 3% for goods and services.
The US remained the most important market for Irish exports, taking 20%, but the value of exports dropped by 1% as the dollar weakened. Exports to the second largest market, the UK, fell 2%, the third annual decline in a row.
The IEA described activity in European markets as 'anaemic', with exports to Germany down 9% and to the Netherlands down 3%. But a recovery in Japan was stronger than expected, with exports up 9%. Irish exporters also managed to increase exports to China by around 15%, despite the US dollar conditions normally applied in China.
A breakdown showed that the medical and pharmaceutical and toiletries sectors performed well, with exports rising by 14%. Food exports edged up 2%, but drink exports plunged by 18%. Computer equipment exports were down 8.5% as competition affected the Irish base of many multinationals here.
