2015 forecast for exporters
Prospects for Irish exports in 2015 have improved largely as a result of the diminishing impact of the patent cliff effect and the continued success of Irish food and agricultural related exports. However, the export sector is struggling on a number of fronts. Budget 2015 must support the development of a stronger export drive by adopting measures that address a number of urgent issues and implement specific policy measures identified by Irish exporters as critical to their efforts to expand their businesses. To stimulate the development of the Irish export sector, the IEA (Irish Exporters Association) recommends the Government should consider the following for the 2015 Budget.
(IEA Pre-Budget Submission 2015)
The IEA suggest that exporters who are subject to withholding Tax in foreign countries and are unable to offset it in the current year on their Irish taxes, should be able to carry unused withholding tax credits forward. By carrying these forward they will be available for off-set against future corporate tax liabilities.
Alan McQuaid an economist at Merrion Stockbrokers said, "As regards 2015, it will be difficult to increase and actually maintain market share in an ever more competitive environment even with the benefit of a sharply weaker euro, though Irish exporters should continue to perform well on a relative basis.”
Export led growth will be the main driver of faster growth in real GDP which will in turn determine our success for increasing employment and the elimination of Ireland’s fiscal deficit and reducing the national debt to GDP ratio.
Ireland is one of the biggest exports of pharmaceuticals in the world (28% total exports), organic chemicals (21%), data processing equipment and software (12%) and food (8%). The EU (European Union) accounts for 60% of total exports.
The main export partners are:
Exports in Ireland decreased in January to €8.351bn from €8.794bn in December 2014. From 1970 until 2015 exports in Ireland averaged €3.358bn, it reached an all-time high in August of 2012 with €9.188bn – CSO.
It is imperative that more funds are available to the SME sector. The Government must ensure that more long-term loan capital is made available particularly for mid-sized companies in Ireland. The lack of State Backed Export Guarantees puts Irish exporters at a competitive disadvantage to other countries such as the UK, France and the US who do have them. The IEA recommends that the Government needs to urgently look at reintroducing a scheme, which could be run by the private sector to restore our competitiveness in this area.
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