2009
Press Release
For release 23rd Sept 09
Half-year Export Figures Show Certain Bright Spots and Highlight Major Problems
According to the Irish Exporters Association-s Half-Year Review 2009 merchandise exports for the first half of 2009 show a return to growth of just under 2%, which the Association calls a remarkable performance given the current economic climate.The Association is forecasting, based on half year figures that for the full year merchandise exports will increase by two percent over 2008 figures with service exports falling by one percent. Taken together this would see total Irish exports rising by one percent to €155 billion for 2009.
According to Mr. John Whelan, Chief Executive of the Irish Exporters Association (IEA) these figures, despite being encouraging in the present economic climate, mask a major problem which is affecting Ireland's traditional export sector. "The bulk of growth in merchandise exports for the first half of the year has come from companies, multi-national in the main, in the life-sciences sector which includes pharmaceuticals, chemicals and medical devices," said Mr. Whelan. He noted that the life-sciences sector now accounts for some 56% of total Irish exports and is a sector which is largely shielded from global economic downturns.
Mr. Whelan said that of the 25,000 jobs lost in the manufacturing sector since June 2008, the majority have been in exporting companies and the forecast for next year is for further contraction. "It has been forecast that a further 35,000 jobs in the manufacturing sector could be lost before the end of 2010 with the bulk of the jobs being lost in traditional sectors," said Mr. Whelan. "The IEA has since January 2009 been warning about the serious damage being done to employment to the indigenous traditional export sector during this recession."
The IEA believes that there are measures the Government needs to take to avoid permanent damage to the indigenous traditional export sector. They include:
- Accelerating the release of the €100 million stabilisation fund approved during the first quarter and to include smaller services companies which look likely to suffer major job losses if not assisted.
- Re- issuing with wider eligible rules the Employment Subsidy Scheme announced by the Tanaiste in August 2009 which focused on assisting 27,400 vulnerable jobs in the export sector. By the closing date of 4th September for applications for this scheme Subsidy only 25% of the targeted companies had been able to apply.
Services Exports
The performance of services exports in the first half of 2009 proved to be stronger than anticipated against a backdrop of turmoil in the financial and insurance sector and contracting world trade volumes. A fall of 5% year-on-year for the first half of 2009, represents a satisfactory performance, but contrasts sharply with the double-digit buoyancy of recent years. The better than expected performance of the sector was boosted by a 6% increase in the Business Services sector, which now accounts for 34% of total services exports. By contrast, the insurance sector fell by 16% and the financial services exports by 16%. Both these sectors mainly operate from the IFSC, where, on average, exports fell by 6.5%.
Mr. Whelan concluded by saying that the current figures provide evidence, if evidence was required, that Ireland's economic stability is being well served by its success in attracting Foreign Direct Investment (FDI) and at being at the heart of Europe. He noted that the European Union accounts for some two-thirds of our total exports. "We have no doubt at the Irish Exporters Association that our ability to continue to attract FDI and our presence in the ever-growing European market can be best served if Ireland remains at the centre of Europe," said Mr. Whelan.
He added that geographically we may be on the edge of Europe, but economically and commercially it has never been more important that we continue to maintain our presence at the heart of Europe.
END.
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For further information, please contact:
John F. Whelan, Chief Executive, Irish Exporters Association
Mobile: 087 927 1243 or Email: jfwhelan@irishexporters.ie
About the Irish Exporters Association (IEA)
The IEA represents the needs of export industry ensuring that the necessary conditions are created and the necessary support is provided to assist companies to maximise their export sales. The IEA draws its membership from every exporting sector, ensuring that the interests of all industries are represented and promoted at the highest level.
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