2008
Press Release
26 March 2008
Rapid Services Exports Growth
Continues
The release last week by the Central Statistics Office (CSO) of the “Balance of International Payments” confirms the continued rapid growth of services exports.
The CSO release shows:
- Services exports for the full year 2007 of EUR 64.8 billion
- This is an increase of 15% on the previous year
John Whelan, Chief Executive of the Irish Exporters Association stated
“The services export figures just released, confirm the competitive strength of our services export sector. In 2007, one euro in every fifty spent on traded services globally accrued to Ireland, a share of the world market out of all proportion to the country’s size. This is well illustrated in per capita terms where Ireland is now the second largest exporter of services in the world.’’
He went on to say
“Services exports now account for 42% of total exports, and at current rates of growth, will outgrow our merchandise exports within three years.”
Responding to a question on the impact of the strong euro on services exports, John Whelan stated
“Services exports are not as exposed to exchange rate fluctuations as the goods exports, on international markets. Also, Irish service companies trading internationally are very competitive in terms of salary levels, compared to the going rate internationally. Typically, we don’t have the “China low-wage syndrome” to deal with.”
He went on to point out that “the Irish regulatory and tax regime is one of the most attractive globally for services exporters, which was further consolidated in this year’s Finance Bill. “All these factors keep us competitive despite the turmoil in the markets.’’
The Irish Exporters Association also pointed to the World Trade Organisation’s figures, showing Ireland as the 12th largest exporter of services globally, as indicative of the competitiveness of Irish services exporters.
The Irish Exporters Association’s Chief Executive concluded by saying
“The services export sector can continue to grow very rapidly if the EU Services Directive is fully implemented. A competitive EU market which currently accounts for 61% of our Services exports is essential to promote economic growth and create jobs in Ireland over the next decade. This is particularly important as we can expect to face continued competitive difficulties in our merchandise goods markets. At present numerous barriers within the EU internal market prevent providers, particularly the small and medium sized companies from extending their operations outside of Ireland and taking full advantage of the internal market.
A stronger base in Europe would help exporters tackle the wider global markets. We welcome the work of Commissioner McCreevy in bringing the Directive through the EU and look forward to strong support from the Irish MEPs and Government in transposing the Services Directive into Irish law by end of 2009, but by also pushing for a fully open, single EU market for services, once the Directive is in place.’’
The Irish Exporters Association provides the additional information extracted from the CSO Balance of International Payments Release 2007 as follows:
The growth in services exports can be largely attributed to:
- Business Services which increased by 38% to EUR 20.6 bn
- Business Services exports arise from:
- Operational leasing of aircraft amounting to EUR 5.2 bn
- Trade related services for maintenance, repair and installation of power plants and equipment abroad, amounting to EUR 8.0 bn
- Miscellaneous consultancy services for legal, accounting and management consultancy of EUR 7.4 bn
- Business Services exports arise from:
- Computer software services which grew by 14% to EUR 19.0 bn
- Insurance services which increased by only 2% to EUR 9.2 bn
- Financial services which increased by a strong 17% to EUR 8.9 bn
The largest market for services exports out of Ireland is the EU which takes 61% of the total. Within the EU, the UK is the largest single country market taking approximately 22% of the total.
The IFSC continues to be a large source of services exports, accounting for 33% in 2007. But this has continued to fall year on year, and is down from 36% in 2006.
Forecast 2008
The Irish Exporters Association is forecasting services exports to continue to increase rapidly and in 2008 by 15% to reach a level of EUR 74.5 billion or 46% of total exports.
End.
For further information, please contact:
John F. Whelan, Chief Executive, Irish Exporters Association
Mobile: 087 927 1243
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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