Irish exports fell by 1.4% in the first quarter of the year. The industry has performed well in recent times and is seen as key to our recovery.

The worst hit sector was manufacturing where exports fell by over 11% between January and March. The sector is expected to continue to contract in the first half of the year due to what the Irish Exporters Association (IEA) is calling "stagnation of demand in the EU countries, and the reluctance by most businesses to investment"

But it says a return to some growth in the second half of 2013 is expected provided the UK and Eurozone economies pick up and the return to moderate growth continues in the United States, along with an acceleration in growth in Japan.

However agri-food exports showed strong growth of 7% despite the horsemeat scandal while the services sector exports rose by 8%. The IEA believes that the agri-food and drink producers will be one of the few export growth drivers in the merchandise export sector throughout the year.

Services trade globally grew by only 2% last year according to the World Trade Organisation (WHO), which the IEA says puts Irish export growth of 11% last year into context. It warns that growth in services exports at this high level will not continue, but that a more sustainable moderate growth will take place in 2013.

The IEA says it has advised the Taoiseach Enda Kenny that sustaining and recovering the manufacturing sector exports will only be achieved if there is a focus on:

• Improving our cost competitiveness - despite the relative gains over the past 5 years, costs in Ireland are still significantly higher than the EU average.
• Supporting companies to drive growth in the high growth markets where we continue to be historically weak.
• Getting more companies to export.
• Ensuring growth capital is available to fund the growth

"The Gathering" initiative is being credited with a boost in tourism and travel in the 1st quarter of the year.

Chief Executive of the Irish Exporters Association is John Whelan. He says "The Gathering" means more money is being spent here by visitors. While the recession has hit our normally reliable markets like the UK and Europe.