CSO stats show trade deficit with China and robust exports to UK - BDO analysis
CSO stats show trade deficit with China and robust exports to UK - BDO analysis
Lorna Kelly, Director in Customs and International Trade Services at BDO Ireland, was featured in The Irish Times with her commentary on the latest update from CSO.
The latest CSO statistics for May show that Ireland recorded a trade deficit with China. This follows consecutive trade surpluses in recent months, outside of prevailing European Union trade trends. Meanwhile, Irish exports to the United Kingdom have continued to grow.
Over recent years the EU has recorded a growing trade deficit with China. In Q1 2026 the deficit in goods reached €98 billion, which was the highest since Q3 2022 (€107 billion).
The new figures point to a notable shift in Ireland’s trading relationship with China. While exports remained broadly stable at €751 million, compared with €764 million in May 2025, imports increased significantly from €923 million to €1.17 billion, resulting in a trade deficit for the month.
The year-to-date figures tell a similar story, with exports of €4.65 billion compared with imports of €5.65 billion, leaving Ireland in an overall trade deficit with China for the first five months of 2026.
Exports to Great Britain increased by 26.3% year-on-year to €1.6 billion, significantly outpacing import growth of just 2.7% to €1.39 billion. The increase was driven primarily by Machinery and Transport Equipment, which accounted for €563.8 million, or almost 35% of exports to Great Britain, together with Food and Live Animals at €366.2 million (22.7%).