Dáil Éireann Debate, Wednesday - 25 January 2012
4Deputy Willie O’Dea asked the Minister for Jobs; Enterprise and Innovation if he will provide the trade balance for goods and services with the UK, with the rest of Europe, with the rest of the world and with BRIC countries for each of the years 2007, 2008, 2009, 2010 and for 2011; his projections for the next two years; and if he will make a statement on the matter. [4338/12]
View answerThe full details of our trade balance are set out in the tables that follow this reply. Complete data for 2011 are not yet available. In summary, Ireland's trade balance with the UK improved from a deficit of €385 million in 2007 to a surplus of €3,009 million in 2010. The trade balance with BRIC countries improved from a deficit of €923 million in 2007 to a surplus of €2,714 million in 2010. A trade surplus of approximately €27 billion prevailed with the rest of the EU throughout the period from 2007 to 2010. The trade balance with the rest of the world improved from a deficit of €2,940 million in 2007 to a surplus of €7,853 million in 2010. The indications for 2011 are that exports will continue to grow in these markets, outstripping import growth in each case.
The strong growth of net exports has helped make a crucial and positive contribution to this country's GDP. This is especially important because some other components of economic growth have been negative. The latest Government forecast for export growth in 2012 is 3.6% and in 2013 is 4.5%. Our export performance has been very impressive. Following the fall in exports during the worst years of the recession, they have rebounded. When the final data for 2011 are published, it is expected that a modest increase will have been achieved despite the economic difficulties in some of our key markets. Furthermore, volume trends have been particularly good as we have become relatively cheaper in many markets. The strong performance of the food sector, with its deep links to the wider economy and indigenous firms in particular, has been a positive feature of our export recovery.
I am confident that our exporting momentum will be maintained for the coming years, subject to conditions not deteriorating in the world economy. Exports from Enterprise Ireland clients, which cover much of the indigenous exporting sector, are likely to reach or exceed €14.6 billion for 2011, which represents an increase of approximately 5%. If there is reasonable stability in global markets, these exports could expand by approximately 5% again this year. The Government is committed to supporting export growth in every possible way. A new role in the promotion of trade has been assumed by the Tánaiste to ensure the impact of our overseas representation is maximised. The new Export Council, which was established under the programme for Government, is being chaired by the Tánaiste. It is developing initiatives to open new markets and increase the penetration of Irish business in existing markets.
|
Country |
Merchandise Exports (€M) |
Services Exports (€ M) |
Total Exports (€M) |
Merchandise Imports (€M) |
Services Imports (€M) |
Total Imports (€M) |
Merchandise Trade Balance (€M) |
Services Trade Balance (€M) |
Total Trade Balance (€M) |
|
|
2007 |
UK |
16,742.82 |
15,758.00 |
32,500.82 |
20,869.23 |
12,017.00 |
32,886.23 |
-4,126.41 |
3,741.00 |
-385.41 |
|
2008 |
UK |
15,864.28 |
15,289.00 |
31,153.28 |
19,202.67 |
11,841.00 |
31,043.67 |
-3,338.38 |
3,448.00 |
109.62 |
|
2009 |
UK |
13,485.29 |
13,610.00 |
27,095.29 |
13,728.07 |
10,565.00 |
24,293.07 |
-242.77 |
3,045.00 |
2,802.23 |
|
2010 |
UK |
13,799.51 |
14,395.00 |
28,194.51 |
14,718.63 |
10,466.00 |
25,184.63 |
-919.12 |
3,929.00 |
3,009.88 |
|
2007 |
Brazil |
161.63 |
122.00 |
283.63 |
240.91 |
14.00 |
254.91 |
-79.28 |
108.00 |
28.72 |
|
China |
1,320.37 |
1,233.00 |
2,553.37 |
4,782.06 |
131.00 |
4,913.06 |
-3,461.69 |
1,102.00 |
-2,359.69 |
|
|
India |
168.34 |
374.00 |
542.34 |
279.93 |
103.00 |
382.93 |
-111.59 |
271.00 |
159.41 |
|
|
Russia |
326.85 |
1,165.00 |
1,491.85 |
77.54 |
166.00 |
243.54 |
249.31 |
999.00 |
1,248.31 |
|
|
BRIC Combined |
1,977.19 |
2,894.00 |
4,871.19 |
5,380.44 |
414.00 |
5,794.44 |
-3,403.24 |
2,480.00 |
-923.24 |
|
|
2008 |
Brazil |
183.25 |
199.00 |
382.25 |
214.50 |
70.00 |
284.50 |
-31.24 |
129.00 |
97.76 |
|
China |
1,609.28 |
1,425.00 |
3,034.28 |
3,901.99 |
430.00 |
4,331.99 |
-2,292.71 |
995.00 |
-1,297.71 |
|
|
India |
160.98 |
423.00 |
583.98 |
265.16 |
88.00 |
353.16 |
-104.18 |
335.00 |
230.82 |
|
|
Russia |
344.47 |
1,244.00 |
1,588.47 |
134.11 |
254.00 |
388.11 |
210.36 |
990.00 |
1,200.36 |
|
|
BRIC Combined |
2,297.98 |
3,291.00 |
5,588.98 |
4,515.75 |
842.00 |
5,357.75 |
-2,217.78 |
2,449.00 |
231.22 |
|
|
2009 |
Brazil |
211.33 |
218.00 |
429.33 |
157.76 |
10.00 |
167.76 |
53.57 |
208.00 |
261.57 |
|
China |
1,632.28 |
1,533.00 |
3,165.28 |
2,591.16 |
203.00 |
2,794.16 |
-958.89 |
1,330.00 |
371.11 |
|
|
India |
158.49 |
582.00 |
740.49 |
280.93 |
116.00 |
396.93 |
-122.43 |
466.00 |
343.57 |
|
|
Russia |
242.65 |
983.00 |
1,225.65 |
81.39 |
135.00 |
216.39 |
161.26 |
848.00 |
1,009.26 |
|
|
BRIC Combined |
2,244.75 |
3,316.00 |
5,560.75 |
3,111.24 |
464.00 |
3,575.24 |
-866.48 |
2,852.00 |
1,985.52 |
|
|
2010 |
Brazil |
259.56 |
180.00 |
439.56 |
166.35 |
49.00 |
215.35 |
93.20 |
131.00 |
224.20 |
|
China |
1,672.30 |
1,790.00 |
3,462.30 |
2,523.62 |
302.00 |
2,825.62 |
-851.32 |
1,488.00 |
636.68 |
|
|
India |
161.69 |
788.00 |
949.69 |
301.14 |
113.00 |
414.14 |
-139.45 |
675.00 |
535.55 |
|
|
Russia |
372.83 |
1,300.00 |
1,672.83 |
159.74 |
196.00 |
355.74 |
213.09 |
1,104.00 |
1,317.09 |
|
|
BRIC Combined |
2,466.38 |
4,058.00 |
6,524.38 |
3,150.85 |
660.00 |
3,810.85 |
-684.48 |
3,398.00 |
2,713.53 |
|
|
2007 |
EU* - (UK) |
39,863.96 |
28,025.00 |
67,888.96 |
17,856.45 |
22087.00 |
39,943.45 |
22,007.51 |
5,938.00 |
27,945.51 |
|
2008 |
EU* - (UK) |
37,922.95 |
29,019.00 |
66,941.95 |
16,975.11 |
27357.00 |
44,332.11 |
20,947.84 |
1,662.00 |
22,609.84 |
|
2009 |
EU* - (UK) |
37,778.60 |
28,765.00 |
66,543.60 |
12,621.27 |
27409.00 |
40,030.27 |
25,157.33 |
1,356.00 |
26,513.33 |
|
2010 |
EU* - (UK) |
37,744.91 |
31,205.00 |
68,949.91 |
12,698.08 |
30,691.00 |
43,389.08 |
25,046.83 |
514.00 |
25,560.83 |
|
2007 |
World (- EU*) |
32,619.30 |
24,177.00 |
56,796.30 |
24,759.94 |
34,977.00 |
59,736.94 |
7,859.36 |
-10,800.00 |
-2,940.64 |
|
2008 |
World (- EU*) |
32,607.11 |
23,639.00 |
56,246.11 |
21,406.90 |
36,419.00 |
57,825.90 |
11,200.21 |
-12,780.00 |
-1,579.79 |
|
2009 |
World (- EU*) |
32,974.89 |
24,759.00 |
57,733.89 |
18,711.75 |
37,212.00 |
55,923.75 |
14,263.14 |
-12,453.00 |
1,810.14 |
|
2010 |
World (- EU*) |
37,672.10 |
28,237.00 |
65,909.10 |
18,282.16 |
39,774.00 |
58,056.16 |
19,389.94 |
-11,537.00 |
7,852.94 |
*Some country data suppressed for confidentiality reasons and therefore not included
I am trying to assimilate the host of figures the Minister has given the House. I cannot get my head around them just yet. An overall trade surplus has been projected for 2012. What increase does this represent on the trade surplus for last year? One of the many figures the Minister mentioned was the projected increase of 3.6% in exports next year. Is that correct?
Is he aware of the view of the Irish Exporters Association that a minimum increase of 5% in exports will be needed to meet the financial and employment targets that are implicit in the IMF-EU deal?
Unfortunately, the way the Deputy asked the question means that a simple aggregate figure has not been provided. Our trade surplus with the UK increased from €2.8 billion to €3 billion from 2009 to 2010. Our trade surplus with the BRIC countries increased from €1.99 billion to €2.7 billion over the same period. Our trade surplus with the EU decreased slightly from €26.5 billion to €25.5 billion over that period. Our trade surplus with the rest of the world increased substantially from €1.8 billion to €7.8 billion over that time. I do not have an aggregate figure. The trends are healthy. Overall, we will have a balance of payments surplus. As a nation, we will be paying back our indebtedness. Of course there are different views about the projected levels of growth that will be necessary if the budgetary targets are to be delivered. Although the troika is expecting a downgrading of growth figures in the wake of its recent visit, it is confident that the Irish fiscal plan is set to meet the target that has been set for it. These matters will be monitored carefully by the Minister for Finance. It is not an issue for me directly.
Does the Minister agree that we continue to rely heavily on traditional markets, like the United States and the rest of Europe? Can he indicate what percentage of our total exports went to the BRIC countries last year? How did that compare to the equivalent percentage the previous year? Can the Minister confirm that the increase in Irish exports to the BRIC countries last year was approximately 4%, which compares very unfavourably to the average increase of 22.5% that was achieved across the 27 EU member states?
The Deputy is looking for figures that have not been compiled in the way he seeks. I remind him that we have authoritative data up to the end of October only.
Yes.
There has been an increase in our trade to the four BRIC countries. The Deputy's point is right, overall. Even though over a four-year period there has been a 50% increase in trade to the BRIC countries, as a proportion of our overall trade, it continues to be modest. One of the ambitions that was set in the programme for Government was to build on our efforts in this area. To be fair, it was also a target of the previous Administration, of which Deputy O'Dea was a part. We are putting more feet on the ground in such countries. The Minister for Finance recently introduced a tax concession to encourage people to place marketing workers in these countries. They will get a tax concession for that. We need to have a long-term commitment to these markets. It is recognised that if we are to increase these figures significantly, we will have to target companies that are willing to make such a commitment. That is why the Minister has offered this tax break.
