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| Source: CSO |
Seasonally adjusted Irish merchandise exports fell 12% in May, relative to April 2009 and imports grew by 1%, according to the CSO. Relative to March 2009, exports increased by 6% and imports decreased by 5% in April 2009.
On an unadjusted basis, the value of exports in May 2009 was down 8% on May 2008, while the value of imports was down 22%. The value of exports in April was up 7% on April 2008 and the value of imports was down 26%.
As less than 20 US-owned firms are responsible for about two-thirds of goods exports, we always caution about the usual rush to self-congratulation by ministers and some economists, when figures are positive; ditto for declines.
The January-April figures for 2009 when compared with those of 2008 show that:
Exports increased from €28,754m to €29,657m (+3%) – Medical and pharmaceutical products increased by 19%, Organic chemicals by 27%, Professional, scientific and controlling apparatus by 22% and Other transport equipment (including aircraft) by 649% (€383m).
Electrical machinery decreased by 31%, Computer equipment by 27%, Chemical products by 21%, Telecommunications equipment by 25%, Metalliferous ores by 55% and Industrial machinery by 38%.
Goods to the United States increased by 20%, Belgium by 25%, Switzerland by 22%, Bermuda by €119m and Spain by 8%. Goods to Great Britain decreased by 7%, Northern Ireland by 23%, Germany by 17%, the Philippines by 67% and Malaysia by 29%.
Imports decreased from €20,572m to €16,189m (-21%) – Road vehicles decreased by 77%, Computer equipment by 34%, Petroleum products by 31%, Specialised machinery by 55%, Industrial machinery by 36%, Iron and steel by 56%, Telecommunications equipment by 33% and Electrical machinery by 16%.
Other transport equipment (including aircraft) increased by 62%, Power generating machinery by 33%, Professional, scientific and controlling apparatus by 5%, Animal feed by 8% and Tobacco by 32%.
Goods from Great Britain decreased by 30%, Germany by 47%, China by 23%, South Korea by 64%, Italy by 33% and Japan by 51%. Goods from the United States increased by 22%, Austria by 32%, Canada by 51%, India by 38% and Argentina by 36%.
Rossa White, chief economist, Davy Research commented:
Exports boosted by chemicals; remainder of good exports fare worse
- Goods exports down sharply in value in May thanks to dollar weakness, following record exports in April
- Irish goods exports held up remarkably well during the collapse in global trade last year and in early 2009. That showed in April when the value of goods exports from Ireland reached a record high of €7.8bn.
- Yet exports slipped back to €6.8bn in May, seasonally adjusted, a fall of 13%. A breakdown will not be available for May until next month.
- But there is an obvious explanation for part of the slippage. More than 75% of goods exports are priced in dollars, thanks to the domination of US-owned multinationals in Irish manufacturing. The dollar fell sharply against the euro by 7% month-on-month in May compared with April. This directly reduces the value of exports translated into euro.
Irish goods exports have performed well relative to other countries thanks mainly to reliance on chemicals/pharma
- Ireland's chemicals exports sector (either inputs into pharmaceutical products or actual fabrication of drugs) accounts for more than half of our manufacturing exports. In January-April, chemicals exports rose 16% year-on-year (yoy). Pharmaceuticals are one of the most defensive sectors globally. The remainder of goods exports dropped 11% yoy in that period. Overall, goods exports increased 3% in value.
- Both food (-12% yoy in January-April) and machinery and transport equipment (-24%) suffered.
Imports starting to stabilise after collapse in H2 08/ Q1 09
- Imports dived in the second half of last year and first quarter of 2009, reflecting the slide in consumer spending and business investment. The volume of goods imports fell 28% from August 2008 to February 2009. But volume rose in March and held that level in April. No data are yet available on volumes for May, but the slight rise in the value of imports suggest that stabilisation continued.
