IRISH SERVICES exports grew rapidly in the first half of 2010, but job creation may not return to the sector until next year, the Irish Exporters Association said.

Chief executive John Whelan said yesterday there were still “a number of obstacles” that needed to be tackled before sustainable export-led growth for the Irish economy emerged.

In its first-half review, the association said the sector grew by €2.2 billion to €34.6 billion in the first half of 2010. Services now account for 45 per cent of total Irish exports, it said.

Mr Whelan said that only 3.5 per cent of Ireland’s services exports come from Enterprise Ireland clients, and there were indications that few Irish businesses had moved into international markets.

He called for incentives to be extended to companies through an export outreach voucher scheme.

“As the economy recovers from the worst recession for 80 years, it faces a range of challenges that require ambitious policy responses,” he said.

“Many services companies who have only traded on the home market are now struggling, and shedding jobs; with the right assistance into international markets, they could be critical drivers of growth and job creation.”

Merchandise exports rose 5 per cent in the second quarter, a rise of €1 billion compared with the first three months of 2010 but the figure for the first half of the year was still 4 per cent down year on year. “This represents the first quarterly growth in merchandise exports recorded since the beginning of 2009, and indicates we may now have reached the turning point in the decline in Irish merchandise exports brought on by the global financial crisis,” said Mr Whelan.