The Strategist

Nikkei: Number of bankrupt companies in Japan is growing

01/09/2023 - 09:15

Nikkei: The number of insolvent businesses in Japan increased to 6,400 for the first time in three years.

According to Nikkei, there were 6.4 thousand insolvent enterprises in Japan in 2022, a 5% increase.

The newspaper notes that the number grew for the first time in three years. Additionally, if the total debt of bankrupt enterprises was $8.3 billion in 2021, it was already $17.4 billion in 2022. Businesses in the construction and logistics industries were the first to be affected.

One of the causes is the increase in energy and production material costs related to the war in Ukraine. Additionally, it is mentioned that there is a labor shortage in light of the COVID-19 scenario.