Downturn hit west hardest
There was a sharp rise in the number of companies going out of business during the downturn, according to research from the Central Bank. Relative to the size of the sector, construction experienced the largest number of liquidations during the crisis but the rate of liquidations has been higher in the hospitality, manufacturing and retail sectors.
Dublin continues to account for the largest portion of liquidations but large relative increases in liquidation rates occurred in western regions during the downturn, more so than other regions.
That's according to a new economic letter on 'Corporate Liquidations in Ireland' published by the Central Bank of Ireland.
The research for the first time presents a breakdown of corporate liquidations by sector and geography. This is of particular interest in examining the effect of the recent financial crisis, as both the regions and economic sectors most affected can now be identified.
The financial crisis coincided with a particularly marked increase in corporate liquidations, but the effects were not felt evenly either by region or by sector, according to the research. The report is based on data from the Department of Jobs and Enterprise and the Companies Registration Office.