Insolvencies in Ireland fell in the first quarter of 2025, continuing a downward trend from the previous year, according to a new report from PwC.

The professional services firm said there were 192 insolvencies in the first quarter, 14% down on the same period last year.

This was also down 7% on the last quarter of 2024, when there were 207, and was a welcome boost to the Irish economy on the eve of U.S. President Donald Trump’s impending tariffs.

There were 852 insolvencies in total, significantly below the predictions of up to 1,000 made when Revenue closed the Covid debt warehouse last spring. The rate was aligned with the prepandemic figure of 850 in 2019.

The current number of registered companies is 298,101, compared with about 160,000 near the height of the Celtic Tiger economy in 2005, and PwC estimates the current annual insolvency rate as 29 per 10,000 businesses, well below the long-term average of 50. It said this ratio was a more accurate picture than absolute numbers because of the increase in Irish businesses in recent years.

Among insolvencies was the Irish arm of New Look, which entered liquidation in February. However, retail recorded only 25 insolvencies for the first quarter of 2025, a significant decrease of 40% compared with the same quarter in 2024 (42).

Hospitality had 43 insolvencies, in line with the rates recorded last year when there were 154 in total.

“This consistency suggests the sector is maintaining its current stability despite ongoing economic challenges. Our analysis also shows that most of the insolvencies are predominantly small restaurants and cafes,” PwC said in releasing the figures.

The number of rescue processes in the first quarter of 2025 was consistent with rates last year.

“The continued year-on-year decline in insolvencies demonstrates the robustness and resilience of our economy. However, with the prevailing economic uncertainties and geopolitical risks looming, it remains to be seen what the year has in store,” PwC Ireland Business Recovery Partner Ken Tyrrell said.

Ireland is currently braced for the next round of U.S.-imposed tariffs, which come into effect on 2 April. In a recent meeting with Irish officials, President Trump called out the country’s huge exports of pharmaceuticals, raising concerns about an impact on Ireland’s buoyant life sciences industry.