The Irish Exporters' Association's review of 2005 shows that exports increased by 3%, just about in line with inflation.
The IEA says the figures highlight the pressure on the manufacturing sector to remain competitive if it is to hold onto its business in overseas markets. Manufacturing exports were up just 2.5%, while service industry exports fell away from double-digit growth to a level of 4%.
CEO John Whelan said the pharmaceutical and chemical sector was the only one to experience significant growth of 8%.
Mr Whelan said there was concern at the level of export growth, in a year when world trade grew by 8% and the euro weakened against the dollar and sterling.
He said the current strong economic position, fuelled by domestic spending and construction, could create 'political complacency' about the challenges faced by exporters.
The IEA report shows that exports to the UK fell for the third year in a row, there was no increase in trade with the US, while there was a fall in exports to Asia.
Services now account for 34% of total exports - this figure was 24% in 2002 - with computer services accounting for 35% of services.
The outlook for 2006 is for a 10% rise in global trade, and the IEA is hoping for export growth of 7%, but only if productivity improves and costs are kept in line with our trading partners.
