PwC’s latest Insolvency Barometer shows that the downward trend in insolvencies seen last year has continued this year.
The first quarter of 2025 recorded fewer insolvencies compared to each preceding quarter of 2024 and continues the downward trend identified in the last three months of 2024.
There were 14% fewer insolvencies in the first quarter of this year compared to the same period last year.
Similarly, there were 7% fewer insolvencies in the first quarter of this year compared to the last quarter of 2024.
There were 852 insolvencies in 2024 in total, markedly lower than the more than 900 insolvencies expected for 2024.
Speaking on RTÉ’s Morning Ireland, Pwc Business Recovery Partner Ken Tyrrell said the trend highlights the fact that the Irish economy and many Irish businesses continue to demonstrate resilience, despite geopolitical challenges and the looming US tariff announcement on April 2.
“The downward trend has continued from Q4 and Q1 year on year , there is a lot of apprehension though so we’ll be closely monitoring the results over the next quarter, especially to see if there’s an impact with the tariffs,” said Mr Tyrrell.
“I think supply chains are the number one area of focus for businesses now to assess the impact of tariffs as we go through this week and it will take a couple of weeks and a couple of months to settle down and for businesses to figure that out,” he said.
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“Once the supply chain is assessed, businesses will then look to their budget, cash flow forecasting and very tightly manage their working capital,” he added.
Analysing insolvencies for the first quarter of 2025, the report found that the retail sector has demonstrated resilience after Christmas, while hospitality insolvency levels remain largely in line with 2024.
The insolvency rate per 10,000 businesses has more than doubled since 2021 but remains below the 20-year average.
Dublin, Cork, Kildare, Galway, and Wexford account for four out of every five insolvencies for the quarter, with Dublin alone accounting for three out of every five insolvencies.
