The latest BWA Insolvency Quarterly Market Report offers a crucial lens on New Zealand’s business environment. The latest data as of Q1 2025 reveals a continued rise in insolvencies, underscoring challenges faced by various sectors amid global uncertainties.

Insolvencies in New Zealand have surged by 31% year-on-year, with Q1 2025 revealing a notable increase from Q1 2024. Liquidations have been the primary driver, experiencing a 40% jump, with receiverships and voluntary administrations dipping slightly.

Quarterly comparisons present a fragmented picture. Insolvencies have edged up by 6% from Q4 2024 to Q1 2025, with liquidations and receiverships incrementally rising, yet voluntary administrations continue to decline. Certain sectors continue to face pressure, with construction, food & beverage, manufacturing, and agriculture experiencing significant insolvency hikes.

The global climate plays a role, with international tensions and market uncertainties translating to dampened demand for New Zealand’s exports. This ripple effect impacts local businesses, particularly those with fragile balance sheets. The repercussion is clear: businesses must adapt and fortify their financial health in the face of these headwinds.