Irish merchandise trade performance 'disappointing' in 2005
The combination of healthy domestic demand, higher fuel costs and weak export growth made for a disappointing Irish merchandise trade performance in 2005.
Final data for the year released by the CSO today reveal that the merchandise trade surplus narrowed to a five-year low of €31.9bn in 2005.
The value of imports grew by 10.5% last year, more than double the rate of exports. The provisional volume data show merchandise exports ahead by only 1.3% in 2005. Imports, on the other hand, surged by 8.8% in the same period.
Two categories had a significant impact on the overall trends in merchandise imports in 2005.
First of all, imports of energy products such as petroleum and natural gas increased by 38%, accounting for 20% of the increase in imports. While some of this may be down to increased demand, the vast majority of the increase is likely to be due to increased energy prices.
The second category that had a major influence on the increase in merchandise imports was "Machinery & Transport Equipment". This includes the IT industry, electrical equipment and cars.
Imports here were ahead by €2.8bn, with computer equipment responsible for the majority of this. Imports of road vehicles were also ahead by almost €500m, reflecting the strength of consumer demand throughout last year.
