Press Release

Irish Export Industry Competitive Position Improving but it is a Slow and Long Term Process;
state Irish Exporters Association (IEA) at the release today 19th July of the Review of the Competitive Position of the Export Industry, as carried out for the IEA by Davy Research

Prices and labour costs have made significant gains relative to our UK and European trading partners, this was a key message of the Davy Review.

John Whelan stated:
“The Review shows that since the start of the recession, unit labour costs have increased by 6% in both the UK and Euro zone but have remained unchanged in Ireland”

But he went on to say;
“Ireland’s price level is still well above that of its trading partners despite the positive wage and exchange rate trends”.

The DAVY report indicates:
Ø Ireland’s price level is 25% above that of the UK in purchasing power terms.
Ø Against the US, 28% above purchasing power parity

John Whelan further stated;
“Restoring competitiveness through this “internal” devaluation process is within our control and will yield real benefits in export markets”.

However he concluded;
“Let no one be under any illusion the return to full export competitiveness will be a slow and tough process and will need extensive collaboration from the private and public sectors”.

Please click here to read full report

End

For further information, please contact:

John Whelan
Chief Executive, IEA
Mobile: 087 927 1243


Rossa White
Chief Economist, Davy
Tel: 01 6148770