According to the Central Statistics Office (CSO), Irish goods exports saw a decline of roughly €800 million in February. Compared to the same month the previous year, the (unadjusted) worth of exports plummeted by about 5 per cent to €15.9 billion. This was principally attributed to a 38 per cent dip in organic chemical exports, tallying up to €1.4 billion. However, the CSO does warn against putting too much stock into month-on-month tendencies due to the unpredictable nature of the pharma industry, Ireland’s major export sector.
The reports reveal an 8 per cent surge in January and February’s exports, registering almost €35 billion, and contrasting with the same period last year. Meanwhile, goods imports in February dropped by €1.1 billion (or 10 per cent) to €10 billion compared to February 2023.
A significant impact on this was a 34 per cent decrease in imports from Britain, which came to around €1.4 billion. The most noticeable slump was spotted in the import of chemicals, related products and mineral fuels, the latter mirroring the global descent in fuel prices.
Year on year, exports to Britain sank by 5 per cent in February. Janette Maxwell, Grant Thornton’s director in tax, attributed this to the newly imposed UK customs controls on goods coming from Ireland, which she said led to amplified challenges for Irish sellers when they are held liable for clearing the goods in Britain. She anticipates this situation to become more complicated as the British authorities plan to implement more stringent border inspections.
Carol Lynch from BDO Customs and International Trade Services expressed her curiosity about the ongoing adaptability of the Irish Agri-Food export sector to the changes at the UK border.
In February, the EU took up the largest portion of total Irish goods exports (45 per cent), marking €7.1 billion. Out of this sum, €2 billion went to the Netherlands, €1.7 billion to Germany, and €1 billion to Belgium. The primary non-EU trade partner was the US, responsible for €4.2 billion, i.e., 26 per cent of the overall exports that month.