The latest trade data shows that Ireland's commodity exports decreased by 5% in the first eight months of this year
Ireland's commodity exports have been hit by the slowdown in global demand and the reduction in demand for COVID-19 vaccine for the local pharmaceutical industry.
The latest trade data from the Irish Central Bureau of Statistics shows that the export volume of goods in the first eight months of this year decreased by 5% (6.5 billion euros) compared to the same period in 2022, to 133 billion euros.
In the context of economic slowdown in major export markets such as the European Union, the United Kingdom, and the United States, Ireland's exports have experienced their first reversal in several years.
This also reflects the natural decline in demand for COVID-19 related drugs, which boosted Ireland's exports at the peak of the epidemic.
According to data from the Central Bureau of Statistics, the seasonally adjusted export value of goods in August was 16.5 billion euros, a slight decrease from the previous month. However, data shows that compared to August last year, the export of organic chemicals decreased by 3.3 billion euros, to 1.7 billion euros, a decrease of 66%.
Seasonally adjusted commodity imports decreased by 1.3 billion euros (11%) to 10.6 billion euros, resulting in a seasonally adjusted trade surplus of slightly less than 6 billion euros in August.
The Central Bureau of Statistics pointed out that "seasonal adjustments exclude fluctuations that may be caused by seasonal patterns of trade, in order to compare monthly data
In August, the total amount of goods exported by Ireland to the European Union was 6.2 billion euros, accounting for 38% of the total export value. Among them, 1.9 billion euros were exported to Belgium, 1.2 billion euros were exported to Germany, and 1.3 billion euros were exported to the Netherlands. The United States is a major non EU destination, accounting for 32% (5 billion euros) of total exports in August.
The export value to the UK is 1.3 billion euros, accounting for 8% of the total export value in August. The products with the largest export share are chemicals and related products, with an export value of 382 million euros, food and live animal exports of 315 million euros, and machinery and transportation equipment exports of 240 million euros.
Compared to the first eight months of 2022, exports to the UK from January to August increased by 1.3 billion euros (an 11% increase), reaching 12.7 billion euros.
However, Janette Maxwell, the head of Irish tax at Grant Thornton, pointed out that recent data shows a significant decrease in commodity trade between Ireland and the UK.
She said, "Compared to August 2022, the import volume from the UK to Ireland in August 2023 decreased by 14% to 1.8 billion euros. Compared to August 2022, Ireland's exports to the UK in August 2023 decreased by 15% to 1.3 billion euros
Although trade with the UK has improved compared to the initial stage after Brexit, traders need to pay attention to the border procedures to be implemented at the UK border in early 2024, "said Carol Lynch, BDO Ireland partner and head of customs and international trade services
She said, "This will cause friction, especially for food exporters from Ireland to the UK, so it is important for Irish exporters to continue preparing for it