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ECONOMY

Over 10,000 businesses likely to file for bankruptcy due to COVID-19

  • May 16, 2020
  • , Asahi, All national papers
  • JMH Summary

Saturday’s Asahi took up a forecast by a Japanese business consultancy that more than 10,000 local corporations are likely to file for bankruptcy this year because of rapid economic deceleration caused by the coronavirus outbreak. It will reportedly be the first time in seven years for the annual number of corporate failures to surpass 10,000. Teikoku Databank also projected that the tourism, restaurant, and retail industries will perhaps be hit hardest, warning of a surge in unemployment in these fields.

 

In a related development, all national dailies reported that more than half of publicly traded companies at the Tokyo Stock Exchange lost profit in the business year ending in March because of U.S.-China trade friction, the hike in the consumption tax last October, and the coronavirus pandemic. Three out of five firms listed on the Tokyo Stock Exchange reportedly said they cannot offer projections of their business performance for the coming year due to the uncertain economic environment.

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