The value of Irish exports fell 4 per cent last November to €7 billion while a decline in domestic consumer spending contributed to a 2 per cent drop in imports.
On an unadjusted basis the value of imports in November was 28 per cent lower than the same month in 2007 while exports were down 8 per cent, according to external trade data from the Central Statistics Office (CSO).
Alan McQuaid, economist with Bloxham stockbrokers, said although the seasonally-adjusted trade surplus in November declined to €2.6 billion in November from €2.9 billion in October, it was still the third highest surplus recorded in 2008.
He suggested it was somewhat ironic given the "all the doom and gloom regarding the Irish economy" that the unadjusted trade balance in November was the highest since June 2004.
During the first eleven months of 2008, the cumulative trade surplus amounted to €27.1 billion, some €2.4 billion higher than the surplus of €24.6 billion in the period January to November 2007.
The strong trade balance should help to limit the overall contraction in both gross domestic product and gross national product for 2008, he said.
Detailed external trade data from the CSO for first 10 months of 2008 show imports declined 11 per cent, with a 23 per cent decline in road vehicles among the most significant factors.
During that ten-month period the value of exports to China increased 21 per cent, Malaysia by 51 per cent, Spain by 10 per cent, and Poland by 38 per cent.
Against this there was a decline of 21 per cent in exports to Switzerland, goods to the Netherlands were 17 per cent lower and those to Germany down 9 per cent. Exports to Great Britain were 4 per cent lower over the period.
Fine Gael spokesman on enterprise Leo Varadkar said exports hold the key to restoring the Irish economy.
"Ireland cannot tax, borrow or spend its way out of recession. We must trade our way back to economic health. In order to do that the economy must become competitive again."
Mr McQuaid noted most of the increase in exports had come from multi-nationals, especially pharmaceutical and chemical firms, based in the Republic, rather than indigenous firms.
"The latest industrial output figures suggest this trend is likely to continue for the immediate future, but there are signs that even the multi-national sector is starting to feel the pain of the global economic downturn," Mr McQuaid said.
A combination of slowing demand and weak sterling meant 2009 looked like being the "most difficult year for Irish exporters for some time, though the overall net trade performance will again be helped by weaker imports due to falling consumer demand," he added.
