Improved competitiveness is helping to increase Irish exports despite the difficult conditions brought about by the weakening global economy.
A new export analysis report by Investec Bank Ireland showed that the index has risen by 0.7% in the year against the backdrop of a UK economy in recession and a contracting euro zone economy.
The report says that, with the UK economy shrinking for the third consecutive quarter and 20% of Irish exports going to the UK, conditions are likely to remain difficult. The Investec Ireland Export Analysis Report points out however that as the US economy expanded by 0.4% through Q2, Irish exporters more oriented to the US economy may find conditions less tough than those faced by European focused exporters.
Aisling Dodgson, head of treasury at Investec Ireland , says that although conditions faced by Ireland’s exporters remain difficult, they have shown resilience, seeking out further competitiveness gains, whilst drawing benefits too from a weaker Euro.
“Various indicators show that Ireland has regained the ground it lost over the first half of the previous decade as labour costs have been restrained and as firms have striven to improve productivity.
“Data from the European Central Bank also shows that Ireland has also made gains in competitiveness relative to the rest of the Euro area of around 18% over the past five years. Ireland’s ever improving competitiveness will aid the Irish economy, and its exports, in mitigating against the increasing challenges posed by the global slowdown.”