Issue 591 (Week ending 19/07/2023)

Evaluating the first six months of 2023 is a far from straightforward exercise. At a global level, we continue to grapple with economic uncertainty, high interest rates, and a rising cost of living. Despite these macro-economic pressures, the Irish economy has on balance, proven more resilient than some of our neighbours. Corporate tax receipts are up, and the Irish Government finds itself in the novel position of trying to decide how to allocate an EUR8billion budget surplus.

That said, the first six months of the year saw a 48% year-on-year increase in insolvencies, with 410 insolvencies recorded in H1 2023, versus 277 for the same period in 2022, according to our latest figures at CRIFVision-Net.

The period saw significant insolvency growth in key sectors including hospitality (+214%), construction (+148%) and financial services (+37%).

On a more positive note, star--ups during the same time period rose by seven per cent, with a total of 20 counties recording year-on-year increases. Key economic centres Dublin (+7%), Cork (+5%) and Galway (+8%) all recorded modest YoY growth. Limerick (-6%) was the only large urban population to record a decrease in new start-ups.

Economic bellweather sectors such as hospitality (+12%), real estate (+10%), IT (+9%), financial services (6%) and construction (+6%) all recorded growth, however, from a relatively low 2022 baseline. Meanwhile another key industry, manufacturing, saw a nine per cent decrease in new start-ups.

As we turn our attention to the second half of the year, we hope to see a more positive business sentiment amongst Irish consumers and SMEs, and that this sentiment will materialise as a confidence, growth orientated mindset going into 2024.