April 18, 2023
According to the most recent survey conducted by a credit research company, the number of business failures in Japan increased for the first time in three years since fiscal 2019.
According to a data published online by Japan’s Teikoku Databank Ltd., the number increased by 14.9% from April 2022 to March 2023, reaching 6,799 cases.
Since 2008, when the global financial crisis began, it grew by more than 800 cases from the preceding year for the first time in 14 years, according to the research.
According to the research, the total liabilities left by insolvent enterprises soared by 97.7% during the fiscal year 2022 to reach 2.34 trillion yen (17.57 billion dollars).
According to the research, bankruptcies increased year over year across all examined industries, marking the first increase in that statistic in 14 years.
Bankruptcies rose 19.1% year over year to 1,699 instances in the service sector, which was severely hit. The retail sector recorded 1,315 cases, coming in second.
According to the research, the lengthy building period, labor shortage, and high material costs were the main causes of the construction industry’s steep surge in bankruptcies for the first time in three years.
According to the report, many small and medium-sized businesses gave up when the significant cash flow support for businesses ceased in fiscal 2022 as a result of numerous difficulties such as inflation, a labor shortage, and the depreciation of the Japanese yen.
It issued a warning that “zombie companies” that are unable to repay loans’ interest with earned revenues require drastic revitalization and should be strictly monitored for the upcoming fiscal year 2023.
Source: XINHUA.NET NEWS.CN
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