Irish exporting companies returned to growth in the first half of the year despite the continuing global recession, according to the Irish Exporters' Association (IEA). But the association has also warned of further heavy job losses in the sector over the next year.
A tale of two economies is evident in the IEA's half-year review, published today. Exports of pharmaceuticals, chemicals and medical devices are defying the global recession and have helped pull the overall figure for Irish goods exports into positive territory.
Growth was just under 2% in the first half, and the IEA expects a similar growth figure for the full year.
The life sciences sector now accounts for 56% of merchandise exports from Ireland and has increased by 11% in the first six months of the year compared with the same period last year. But exports of traditional goods in the food and drinks sector have fallen by 10%.
The IEA estimates that 25,000 jobs have been lost in the manufacturing sector in the past year and says 35,000 more jobs could go by the end of next year.
Its chief executive John Whelan has called for a widening of the Employment Subsidy Scheme and warned against a growing dependence on a limited number of large exporters.
