October 21, 2022
According to a local credit research firm, 3,141 businesses declared bankruptcy between April and September, an increase of 6.9% compared to the same time last year.
A study by Tokyo Shoko Research Ltd. revealed that it was the first increase in company bankruptcies in three years in Japan.
According to the company, many businesses had trouble repaying government financial aid they had received in response to the COVID-19 outbreak.
Locally, bankruptcy cases increased throughout the time in 29 prefectures, including Hokkaido and Kyoto. Osaka, Hiroshima, and the other 14 prefectures all had a decline in the number of bankruptcies.
The number of bankruptcy cases increased for the eighth consecutive month in the service sector, which had a total of 215 instances, while the construction sector experienced the largest growth, with a 29.8% increase from a year earlier.
Due to high gasoline prices, the transportation industry had a total of 162 bankruptcy cases, an increase of 42.1 percent, but the real estate industry experienced the fewest bankruptcy cases in 30 years.
According to the research firm, since August, there have been more bankruptcies brought on by high raw material costs as a result of the yen’s depreciation versus the US dollar and other major currencies.
Source: Xinhua.net
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