Minister Ahern gives cautious welcome to trade figures

Speaking from Bucharest, Romania where he is supporting Irish companies developing sales and business linkages in that market, Minister for Trade and Commerce, Mr. Michael Ahern T.D, today (Thursday 16^th June 2005) reacted favourably to the trade statistics released today by the CSO. The figures show that exports for April 2005 increased by 12% relative to March 2005 while imports increased by 14%. The Minister also noted that exports for April 2005 rose by 5% while imports rose by 10% when compared with the figures for the same month in 2004. “While it is too early to say whether this trend will be sustained in the coming months, I am confident that the April figures indicate that we are entering a period of recovery from the effects of the global economic slowdown of recent times, the Minister said. Referring to the rise in imports over the period, Minister Ahern pointed out that “a proportionate rise in imports, particularly raw materials, is often an indication of increased economic activity leading to an increase in exports in the longer term.”

While there was a slight decrease of 2% in exports for the period January-March 2005, when compared with the same period in 2004, the Minister felt that, with the significant increase in April export figures, this would translate into a positive situation in the coming months.

The EU continues to increase in importance as an export market consistently accounting for 62% of all Irish exports. Minister Ahern said that he would expect that figure to increase further over time. Minister Ahern was pleased that exports to France and Italy in the first quarter of 2005 increased by 11% and 6%, respectively, “especially given the fact of very low or even zero growth rates in these economies,” he said. “While exports to the US declined slightly, reflecting the value of the US dollar, it remains our largest export market and now accounts for 20% of our total exports,” the Minister said. Elsewhere, the Minister noted that trade with China was increasing at the rate of 30%, while trade with Japan also increased. “Overall, the figures show that Irish exporters are putting in a very creditable performance under difficult global conditions and are well placed to take advantage of the global recovery which I believe is in prospect,” he added.

ENDS/TC 160