- Reaction score
- 1,694
TOKYO -- Japan logged more than 9,000 corporate bankruptcies for the first time in nine years in fiscal 2023 as companies reliant on pandemic-era government aid were weeded out, with some analysts predicting that the number could exceed 10,000 this fiscal year.
Corporate bankruptcies involving liabilities of 10 million yen ($66,000) or more increased 32% on the year to 9,053 in the year ended March, according to data released Monday by Tokyo Shoko Research.
Increases hit industries across the board. In construction, where materials prices are soaring, bankruptcies rose 39% to 1,777. Wholesaling saw a 27% increase to 1,048.
While the rise in bankruptcies reflects the plight of small and midsize businesses suffering from cost inflation and labor shortages, it is also a sign that the economy is emerging from COVID-19 support to a normal cycle of business creation and destruction.
asia.nikkei.com
Corporate bankruptcies involving liabilities of 10 million yen ($66,000) or more increased 32% on the year to 9,053 in the year ended March, according to data released Monday by Tokyo Shoko Research.
Increases hit industries across the board. In construction, where materials prices are soaring, bankruptcies rose 39% to 1,777. Wholesaling saw a 27% increase to 1,048.
While the rise in bankruptcies reflects the plight of small and midsize businesses suffering from cost inflation and labor shortages, it is also a sign that the economy is emerging from COVID-19 support to a normal cycle of business creation and destruction.
Japan corporate bankruptcies hit 9-year high with end of COVID lifelines
Tally could top 10,000 in fiscal 2024 as cost pressure rises
asia.nikkei.com
