Press Release

Immediate Release

Exporters Association Year End Review 2009

Hard to overstate the difficulties faced by indigenous exporters in 2009 – according to Irish Exporter Association

On releasing the Exporters Association (IEA) Year End Review 2009, Chief Executive, John Whelan stated “ Despite the strong overall performance of Ireland exports, it is hard to over state the difficulties faced by indigenous exporters in 2009”

The review outlines the key export statistics for 2009:

Ø Total exports of goods and services fell by 1% to €154 billion

Ø Of which Merchandise exports were €85.5 billion and service exports were €68.4 billion

Ø Indigenous export of goods fell by 9% to €13 billion

Ø Food Exports were down 14%

Ø Drink Exports fell further by 21%

Ø General manufactured goods exports were down by 26 %

Ø Gains of 12% on Chemical & Pharmaceutical exports

Ø Gain of 4% on medical devices exports

John Whelan stated;

“The resilience of manufacturing exports was tested to breaking point in 2009 with export sales falling by €6.1 billion when the Life Sciences exports were excluded. This makes 2009 as one of the worst on record for the broad range of traditional Irish manufacturers selling on export markets”

However, the IEA chief executive went on to point out where Irish export industry excelled despite the recession;

‘’The 2009 growth in pharmaceutical and medical devices exports confirms Ireland is one of the leading international locations for the Life Science industry. The industry which spans pharmaceuticals, chemicals, diagnostics, medical devices and biotechnology generates over 60% of our merchandise exports making Ireland the largest net exporter of medicines globally. Ireland is home to 13 of the top 15 companies in the world and manufactures 9 of the world’s top 15 medicines. In 2009 there were over 24,500 people employed in the sector producing exports of over €53 billion. Globally the sector has been expanding by 5-6% per annum since the turn of the decade, and last year recorded global sales of US $745 billion. By comparison exports of Life Sciences products from Ireland have more doubled in the same

time- frame and now account for 9% of global sales.’’

The Exporters Year End Review also outlines the international markets where recession and exchange rate problems made market retention difficult as follows:

Ø UK market which is the main export destination for indigenous exporters fell by 16%. This represented lost sales to Irish Exporters of €2.5 billion, as exporters were forced to abandon the market because of extreme exchange rate difficulties.

Ø The Euro zone recovered in the second half of the year due to early use of EU approved fiscal stimulus measures. Irish exports to the euro zone grew by 3% in 2009, showing the ability of Irish exporters to seize the opportunities when the global market turns and there is a level playing field in terms of currency exchange.

Ø A sharp decline occurred in economic activity in the eight emerging EU countries outside the euro zone, with Irish exports to these countries falling by 21%.

Ø Brazil, Russia, India and China, the so called BRIC countries are the world’s largest emerging economies and have managed to keep growing through the recession. Irish exports to these markets grew by 1%.

Ø Exports to the US grew dramatically by 12% in 2009, driven by the recession proof pharmaceutical, medical devices and chemical sector.

The IEA Chief Executive stated;

“Indigenous exporters who trade extensively with the UK were heavily affected by the continued interference in the sterling currency market by the Bank of England who effectively spent €175 billion in quantitative easing to support UK exporters”

A return to growth in exports to the UK is unlikely to occur in 2010 unless sterling is allowed to return to normal trading levels of approx. 0.80 to the euro.

The final section of the IEA Year End Review 2009 covered the Services export sector;

Ø Total Services Exports fell by 1% to €68.4 billion, bouncing back from a first half decline to grow again in the second half of the year.

Ø Lost exports occurred in

- Financial Services which fell by 9%

- Insurance Services were also down by 11%

Exporters in the IFSC were heavily impacted by the crash in the financial market following the collapse of Lehman Brothers in late 2008, but there was only two complete closures which augers well for a basis of return to growth over the next few years in this sector.

Ø However, strong export gains occurred in the Business Services sector made up of mainly aircraft and engine leasing, consultancy, and business process outsourcing, which grew by 6% to reach €22.7 billion in sales and helped offset losses in financial markets.

Ø Computer services retained a strong export stance and remained as the largest category of services exports (43% of total), maintaining export sales of €23.3 billion for 2009, the same as in the prior year. The growth in the sector arose mainly from new FDI investments by software corporations into Ireland over the past 2 years.

John Whelan, commenting on the Services sector export figures stated;

“Services exports now account for 44% of total exports and offer perhaps the greatest opportunities for export growth over the next few years. The 2009 performance shows the wide range of activity across the sector with capability to withstand major crises such as occurred in the financial markets, which marked the end of 2008 and most of 2009. “

In his concluding comment John Whelan stated;

“Export recovery is expected to continue in to 20010, but it will be a jobless recovery with return to job growth not expected until 2011. ‘’

The IEA review forecasts a 2% growth in 2010, with the majority of growth arising in the services sector. There is under utilised productive opportunity in most export businesses, this will be used up before fresh recruitment commences.

Please view FULL REPORT HERE

ENDS.

For Further Information and comment please contact;

John Whelan

Irish Exporters Association

087 9271243

jfwhelan@irishexporters.ie