2007
Press Release
Tuesday 29 May 2007
For immediate release
Start of year exports up 6%;
Ø Strong export growth from Pharmaceuticals and Beverages
Ø But inflation out of control and will drag back export gains.
The Irish Exporters Association (IEA) today released its review of the first quarter export results and its forecast for the second quarter of 2007 (29 May 2007).
The main features of the Quarter One (Q1) review are:
- Merchandise exports in Q1 at €22.7 billion, up by 6% on the same period last year
- Growth mainly from outside Eurozone in Europe and some markets in Asia ;
USA EXPORTS >> no growth
UK EXPORTS >> +2% growth
EUROZONE>> down 8%
Rest of World>> +51%
- Export growth driven by the Life Sciences sector, which now accounts for 47% of total exports (up 5% to 10.7 billion euro in Q1)
- Indigenous sector continuing to grow, led by growth in the Beverage sector, up by 24%
- Exports to our main indigenous export market the UK, up by 2%.
- Exports to the USA remained flat as expected, with the unfavourable euro to US dollar exchange rate affecting exporters
- Exports to the Eurozone showed a major decline, down by 8%, reflecting the strong impact of continued high inflation in Ireland, at a rate of over twice that of the Eurozone competitor countries
John Whelan, Chief Executive of the IEA stated at the release of the review:
“The pressures on exporters continue to be very severe and despite the good first quarter, there are clear signs that the second quarter exports will be down”.
He went on to say:
“The incoming government must assist exporters to regain competitiveness by tackling, as a first priority, the high rate of inflation. This has now run for 4 months at the 5% level and is feeding into salary and wage expectations. However, it is also driven by the cost of general government services, including electricity and gas costs”.
He concluded by saying:
“Inflation at twice the European average is the major problem for Irish export industry. The new government must commit itself to urgently bringing down inflation to the European average, with specific measures that will hold good for the next 5 years.
We cannot hope to remain competitive with our exports, if we keep loosing control of inflation.’’
Ends.
The full text of the review “Irish Exporters Association – 1st Quarter 2007 Export Report” is available here or contact orlasweeney@irishexporters.org
For further information contact: John Whelan
Telephone: 01 661 2182 – Fax 01 661 2315
Email: jfwhelan@irishexporters.ie
Web: www.irishexporters.ie
29/5/07
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