IRISH EXPORTS LOOK TO BRIC COUNTRIES FOR GROWTH - The highest figure for exports was reached last year with the value of sales hitting €161 billion. Helped by a recovery in the global economy and a weaker euro, sales by agri-food and manufacturing firms took off, especially in the final three months of the year which saw an 18% increase on the year before.
Exports to most euro zone countries fell during the year, with the exception of Germany where sales grew by 42%. Irish firms also shifted their sales focus away from the UK market towards new opportunities in North and South America and Asia.
The Irish Exporters Association's chief executive John Whelan says that as well as currency improvements in our favour, Ireland's competitiveness improved due to lower wages and reduced costs. He says that exports of pharmaceuticals, medical devices and software grew robustly, and are expected to remain strong this year. He says the countries of Brazil, India, China and Russia are driving growth and are expected to remain that way. Big exports to the so-called BRIC countries include pharmaceuticals and agri-foods including baby foods. He says the likes of Abbott, Pfizer-Wyeth and Cow and Gate are all exporting high quality baby food from Ireland to the developing countries, where people can now afford it.
Mr Whelan also says that due to increased world demand and changes in EU legislation, exports of dairy products also rose by 8% last year after two years of decline. Looking ahead, the IEA's chief executive says he would like to see a weaker euro and warns that the export industry can not take sudden big jumps similar to changes experienced a couple of years ago.
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HOUSE PRICES DOWN 40% FROM 2007 PEAK - Property website Daft.ie says the total fall in asking prices for residential property around the country was 14% last year. This means that by the end of 2010 the national average asking price had fallen by 40% from the peak in 2007.
Daft.ie economist Ronan Lyons says that the figures signal the end of a national property market and highlight what he calls a regional property market. He says there is big differences between city and non-city prices with house prices in Dublin falling by about 14% while areas in Wexford and Kilkenny fell by more than 20%. He also says there is a wide variances in the type of houses being sold with a much bigger overhang of properties in the one and two-bedroomed units compared to the three, four and five-bedroomed houses.
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MORNING BRIEFS - Building materials group CRH has said it spent a total of €536m on acquisitions and investments last year, with a significant stepping up of activity in the second half. The deals included 28 bolt-on acquisitions, which expanded its materials presence in the US, Switzerland and Germany.
*** A new report shows that activity in the service sector of the economy fell in December for the first time in three months, as companies were affected by the severe weather. The NCB Services Purchasing Managers' Index says though, that companies are more optimistic about their prospects for this year. The service sector includes business services, financial services, telecoms, media, transport, travel and tourism.
*** High oil prices threaten to derail the economic recovery among developed nations this year, according to an analysis by the International Energy Agency. The oil import costs for the 34 countries that make up the Organisation for Economic Co-operation and Development rose by $200 billion last year to $790 billion. OECD countries account for about 65% of all global oil imports.
*** On the currency markets this morning the euro is trading at $1.3258 cents and 85.32 pence sterling.
