Q1 2024 presents a diverse economic picture

The first three months of the year has shown a diverse economic picture, according to our latest CRIFVision-net quarterly data.

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A 9.8% year-on-year increase in the number of company start-ups was recorded for the first quarter of 2024, However, insolvencies also grew by 55.6% during the same period.

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Dublin saw a 17% growth in new company start-ups (2,706 in Q1 2024 vs 2,306 in Q1 2023) and Galway recorded an impressive 24% growth in company start-ups. However, other counties with large urban populations including Cork (-2%) and Limerick (0%) experienced a slow first quarter.

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Outside of the large urban populations, Donegal (+22%), Mayo (+14%) and Wicklow (+10%) saw positive growth.

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Key economic sectors including construction (+7%), manufacturing (+10%) and IT (+21%) all recorded start-up growth. Meanwhile sectors such real estate (23%) and legal, accounting and business (23%) also saw positive double-digit growth.

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Sectors including Education (-5%), Electricity, gas and water supply (-8%) and agriculture, hunting and forestry (-32%) experienced year-on-year quarterly decreases.

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The challenges facing the hospitality industry have been well documented and this is borne out in the dramatic 132% spike in insolvencies across the sector. Despite this backdrop, it is encouraging to see new hospitality start-ups grow by 13% year-on-year.

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In recent days, newly appointed Taoiseach Simon Harris TD has committed to providing €250 million in supporting small businesses with increased costs. These supports will be critical in stemming the recent increases in insolvencies and helping small businesses weather the continued inflationary pressures.

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In broader economic terms, construction start-ups grew by seven per cent. However, insolvencies grew by 46%. At a time of when our new Taoiseach has committed to building 250,000 new homes between now and 2030 it is important that we are creating and supporting a thriving construction sector capable of delivering upon these targets.

To learn more, visit https://www.vision-net.ie/

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