Irish exports to Britain have fallen 8pc to €5.5bn in the first five months of this year.

As Brexit looms, and sterling continues to fluctuate, and with British Prime Minister Theresa May trying to push through her latest plans, trade with our nearest neighbour already appears to have been negatively impacted.

It came as the International Monetary Fund (IMF) warned yesterday that escalating and sustained trade conflicts are increasingly likely, threatening to derail a global economic recovery and depress medium-term growth prospects.

The IMF, in an update to its World Economic Outlook growth forecasts, said that the United States, as the focus of retaliatory tariffs from trading partners, was especially vulnerable to a slowdown in its exports.

Yesterday, figures from the Central Statistics Office showed the value of Irish goods exports to Britain fell 8pc - or €508m - for the period January to May 2018 compared to the first five months of 2017.

Goods exports to the UK totalled €5.5m in the period.

Goods imports from the UK for the five months to May 2018 were €7.3bn, a 3pc increase on the same period in 2017.

Merrion Capital chief economist Alan McQuaid said lack of clarity over Brexit suggests risks on the external trade front remain elevated going forward, especially for food exporters. "The pound has been volatile in recent months, and remains a lot higher than desirable for Irish exporters," said Mr McQuaid.

"Positive vibes coming out of the UK and Brussels as regards the Brexit negotiations will be required if the pound is to regain lost ground."

Overall, Ireland's trade surplus increased by 20pc to €5.2bn in May, the second-highest on record but monthly data can be volatile.

One month before the United States' tariffs on European steel and aluminium kick in, Irish exports to the US increased by 7.4pc to €16.2bn in the five months to May 2018, compared with the same period in 2017.

However, there was a big drop in imports from the US to Ireland, which fell by almost a fifth to €5.7bn in the five-month period.

The euro area recorded a €16.5bn surplus in trade in goods with the rest of the world in May this year, compared with €19.3bn in May last year.

Irish Independent