PwC says that the Irish economy has remained “resilient” despite global financial challenges, but warns that continuing political uncertainly and the recent energy crisis mean that insolvency levels may rise during the rest of the year.

The PwC Insolvency Barometer’s latest analysis shows that the insolvency rate at the end of Q1 2026 is 27 per 10,000 companies, representing approximately 870 insolvencies per annum. This is far below the 21-year average of 49 per 10,000 businesses (approximately 1,575 insolvencies per annum).

It also says that insolvencies in Ireland in the first three months of this year were broadly consistent with average figures over the past three years. Its figures show that there were 212 business failures in the first quarter (Q1), this is in line with the quarterly average of 205 recorded since 2023.

PwC’s analysis reveals an average of 204 insolvencies each quarter since the start of 2023. These steady figures show that, despite some quarterly fluctuations, insolvency levels remain consistent over the three year period.

The average lifespan of companies declaring insolvency in 2026 was just under 14 years, this is up from just under 12 years for 2025. The shortest-lived company was less than a year old, while the longest lifespan was almost 54 years.

The retail sector recorded the highest level of first-quarter insolvencies with 50, an increase of almost 50% from the previous quarter. The sector accounted for almost a quarter of all insolvencies for the period. 19 of the 50 retail insolvencies related to “Health, Beauty and Wellness” which would be small, owner-operated businesses, including pharmacies and hair-related businesses.

There were 32 insolvencies recorded in the hospitality sector. Only 6 are related to accommodation-based companies, illustrating the differing performance of accommodation compared to food and beverage. The hospitality sector has an insolvency rate of 62 per 10,000. This is more than double the current rate for Ireland, showing that the sector is recording a high number of casualties relative to the number of companies operating in the sector.

There were only 12 corporate receivership appointments recorded in the first quarter, a sharp decrease of over 60% when compared with the preceding quarter.

Ken Tyrrell, Business Recovery Partner, PwC Ireland, commented on the figures, “Despite geopolitical instability, inflation, interest rate variability and tariff changes in recent years, the Irish economy has continued to perform well, and is reflected in the current low and stable levels of corporate insolvencies.

“In particular, despite ongoing high costs, retail and hospitality continue to show reduced levels of insolvencies,” he said.

The firm also said an increasing unemployment rate corresponds to increasing levels of insolvency. Its analysis demonstrates that a 1% increase in the unemployment rate in Ireland correlates to a corresponding increase in the insolvency rate.

Statistically this means for every sustained 1% increase in the unemployment rate, PwC expects to see an additional 245 insolvencies.

The Irish unemployment rate in 2025 increased from 4% in January to 4.9% in November and if this trend persists during 2026, PwC expects to see an increase in insolvency levels during the coming years.

 

NB – This is a guide for information purposes only and does not constitute legal advice. If you have an issue requiring legal advice, please contact any of the team at Nolan Farrell & Goff LLP, whose numbers can be found on our website www.nfg.ie, or email info@nfg.ie.