Japan H1 Corporate Bankruptcies Rise 7.1%, Highest Since 2014
Japan recorded 5,346 corporate bankruptcies involving liabilities of at least 10 million yen in the first half, up 7.1% from a year earlier and the first time the total has exceeded 5,000 since 2014, Kyodo News reported Wednesday, citing Tokyo Shoko Research. Small businesses with fewer than 10 employees accounted for about 90% of the bankruptcies, while nearly 80% involved liabilities of less than 100 million yen. A weak yen fueled inflation and increased financial pressure on small and medium-sized enterprises, the report said. Price-related bankruptcies rose 27.7% to 439, while labor shortage-related cases increased 37.8% to 237. Bankruptcies linked to rising labor costs more than doubled, and the services sector recorded the most failures among all industries at 1,819.
Japan recorded 5,346 corporate bankruptcies involving liabilities of at least 10 million yen in the first half, up 7.1% from a year earlier and the first time the total has exceeded 5,000 since 2014, Kyodo News reported Wednesday, citing Tokyo Shoko Research.
Small businesses with fewer than 10 employees accounted for about 90% of the bankruptcies, while nearly 80% involved liabilities of less than 100 million yen.
A weak yen fueled inflation and increased financial pressure on small and medium-sized enterprises, the report said.
Price-related bankruptcies rose 27.7% to 439, while labor shortage-related cases increased 37.8% to 237.
Bankruptcies linked to rising labor costs more than doubled, and the services sector recorded the most failures among all industries at 1,819.