Substantial declines in chemical and computer trade were the main drivers behind a €160 million drop in the value of exports to countries outside the EU over the first five months of the year, writes Una McCaffrey
Figures released yesterday by the Central Statistics Office (CSO) yesterday show that the value of non-EU exports dropped by 1 per cent to €13.4 billion in the period between January and May.
The fall was much more pronounced in the computer sector, however, where exports outside the EU were down 25 per cent at €1.5 billion.
Weaker trade was also stark in the chemical sector, where the value of non-EU exports was down 7 per cent on 2003 at €6.2 billion. The drop was particularly evident in organic chemicals - the type of product exported by large pharmaceutical companies such as Pfizer. Non-EU exports in this sector were 8 per cent weaker at almost €4 billion.
The drop in chemical and computer exports was offset in part by increases in areas such as professional, scientific and controlling apparatus, where non-EU exports doubled in value to €1.2 billion.
The latest figures show that exports to the US were down slightly over the first five months, falling back by €59 million to €7.13 billion
This decline, which grates slightly with growing evidence of an improving US economy, may be linked to the strength of the euro against the dollar.
While the euro weakened slightly in the months running up to the end of May, it remained strong by historical standards. It has since moved higher again, with the effect of this likely to be evident in export figures over coming months.
A breakdown of export figures for May alone points to a drop of €163 million to €1.29 billion in the value of goods sold to the US when compared to the same month of 2003.
A new factor in the non-EU figures for May was the accession of 10 new states to the union at the start of the month.
The enlargement of the EU means that, from now on, less of the Republic's international trade will be classified as "non-EU".
The value of exports to the 10 accession countries in May 2003 was €59 million, while it was €203.2 million for the first four months of this year.
The latest CSO data on imports shows a 4 per cent climb in incoming trade from outside the EU in the five months to the end of May.
A heavy order of new aircraft by Ryanair is likely to be behind the bulk of the increase, which lifted imports to €1.55 billion.
