Statistics released today by Eurostat show that Ireland experienced an unprecedented increase in the seasonally adjusted number of new business registrations, in a comparison between the second and first quarters of 2021.
Registrations were up by 213.6% following a two year decline over seven of the eight previous quarters. The latest figure is well ahead of a 5.3% increase across other EU states.
The number of new registrations is obviously connected to greater economic activity over the three months between April and June. The only other upward blip was in July, August and September of last year when there was a 45% rise in registrations, which was close to the EU average. That was also connected to some easing of restrictions.
CRIF Vision-Net earlier this month reported a 42% increase in start ups during the first half of 2021. Just under 14,000 new businesses were registered during that period, compared to 9,860 in the first months of 2020 when the country experienced the worst impact of the Covid restrictions.
Dublin and the other urban “hubs” of Cork, Galway and Limerick have accounted for the majority of the start ups. The sectoral break down is interesting with “legal, accounting and business” making up 2,543 of new companies; followed by wholesale and retail with 2,233, financial intermediation at 2,038 and construction at 1,345.
The hospitality sector experience growth, perhaps in expectation of the current relaxations, of 47% compared to the first six months of 2020. However, CRIF attribute some of that to the maintenance of employment and credit supports. What is noticeable is the seeming lack of a recovery in the manufacturing sector.
While Ireland did not supply statistics to Eurostat for its report on bankruptcies across member states (up 24% on the second quarter of 2020), it is still a major factor here. CRIF refer to “the increase in company insolvencies” and forecasts that these are likely to be added to, especially as the supports in hospitality come to an end.