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ECONOMY

Japan corporate bankruptcies rise in 2019 for 1st time in 11 years

  • January 14, 2020
  • , Kyodo News , 3:08 p.m.
  • English Press

TOKYO – The number of corporate bankruptcies in Japan increased in 2019 for the first time in 11 years, affected by a consumption tax hike, labor shortages and a series of natural disasters, a credit research agency said Tuesday.

 

Business failures with debts of at least 10 million yen ($90,900) rose 1.8 percent from the previous year to 8,383, the first increase since the 2008 global financial crisis, Tokyo Shoko Research said.

 

Bankruptcies increased particularly in the retail and transportation sectors that were hit hard by the Oct. 1 consumption tax hike to 10 percent from 8 percent, natural disasters and the labor crunch, the agency said.

 

Total liabilities left by bankrupt companies dropped 4.2 percent from a year earlier to 1.42 trillion yen, the lowest level in 30 years, as a majority of bankruptcies involved debts of less than 100 million yen, it said.

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