329 corporate insolvencies were recorded in Ireland in the first half of the year, new figures from Deloitte show.
This is up 30% on the same time last year, when 253 insolvencies were recorded.
186 corporate insolvencies were recorded in the second quarter of the year, up 30% on the previous quarter. These figures represent the highest quarterly level since the first quarter of 2019.
The data shows that insolvency levels remain around 30% below 2017 and 2018 levels.
“Despite the economic impact of Covid-19 and the negative impacts of high inflation, soaring energy costs and rising interest rates, insolvencies remarkably are still only at 2019 levels, when the economy was in rude health and didn’t face the same economic headwinds,” said David Van Dessel, Partner, Financial Advisory at Deloitte.
“Although we have not yet seen a material fallout from the economic impact of Covid-19 or increased interest rates and inflation, it is evident from the first half of 2023 that we are moving towards pre-covid insolvency levels, after a period of artificially low levels,” he added.
He added that Ireland remains “far below” the levels of 2012-2018 when the average annual insolvency level was over 1,000.
For 2023, Deloitte said 600 corporate insolvencies are anticipated.
A total of 243 Creditors’ Voluntary Liquidations (CVLs) were recorded during the first half of the year, representing 74% of total insolvencies in the period.
This represents a 43% increase from 2022 when 170 were recorded in the same period.
The services sector recorded the highest number of corporate insolvencies during the first six months of the year, accounting for 128 or 39% of all insolvencies during the period.
This is a decrease of 19% compared to the same time last year, when 159 insolvencies were recorded.