Imports rose by €2 billion in May as Ireland’s trade surplus narrowed, according to the Central Statistics Office data released this week.
Import growth outpaces export decline
The CSO reported that Ireland imported goods worth €13.1 billion in May, up from €11.1 billion a year earlier. That represents a 17.5 percent increase and adds €2.0 billion to the total import value.
Exports fell sharply, dropping 29.1 percent year‑on‑year to €16.5 billion. The decline follows a “front‑loading” of pharmaceutical shipments in early‑mid 2025, when firms rushed products to the United States ahead of a planned tariff regime.
Pharmaceutical sales still made up a third of total exports, accounting for €5.6 billion, even though that figure is down 58.8 percent from €13.5 billion in May 2025.
Trade surplus shrinks, sector balance shifts
Seasonally adjusted figures show both exports and imports fell in May compared with April. Exports decreased €1.4 billion (‑7.6 percent) to €16.9 billion and imports slipped €150.9 million (‑1.1 percent) to €13.4 billion.
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The trade surplus narrowed to €3.5 billion in May, down from €4.8 billion in April. Analysts note that the softer surplus stems more from weaker export performance than from any surge in domestic demand.
Exports to the United Kingdom rose €336.4 million (26.3 percent) to €1.6 billion, driven largely by machinery and transport equipment sales worth €563.8 million. The United States and the Netherlands remained Ireland’s top export destinations, contributing 28.6 percent and 10.7 percent respectively.
While the Ireland‑GB goods corridor continues to deliver growth, the broader picture highlights a structural reliance on a few high‑value sectors. The shift highlights the need for Irish firms to diversify markets, especially as post‑Brexit customs and VAT rules add complexity.
From a comparative standpoint, the current pattern mirrors earlier cycles where a temporary export boom—often tied to specific regulatory changes—was followed by a period of normalization. The present data suggest that Ireland is again adjusting to a more typical trade flow after the 2025 surge.
China trade balance turns negative
Ireland recorded a trade deficit with China in May, reversing a series of monthly surpluses. Exports to China held steady at €751 million, barely down from €764 million a year earlier, while imports rose from €923 million to €1.17 billion.
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Year‑to‑date figures show Irish exports to China at €4.65 billion versus imports of €5.65 billion, marking the first five‑month deficit for 2026. This aligns with the EU’s broader trend, where the bloc’s trade deficit with China hit a three‑and‑a‑half‑year high of €98 billion in the first quarter.
Lorna Kelly, director of customs and international trade services at BDO Ireland, said the new data “demonstrate Ireland’s strength in trade with the UK and a new pattern in trade between China and Ireland.” She added that the shift “marks a notable change in the bilateral trading relationship” and warrants close monitoring as imports climb relative to Irish exports.
Overall, the May figures highlight a tightening trade surplus, driven primarily by a steep drop in pharmaceutical exports and a modest rise in imports.
Imports grew despite slower demand.
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