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ECONOMY > Economic Indicators

Japan corporate bankruptcies hit 57-year low in 2021

  • January 13, 2022
  • , Jiji Press , 8:31 p.m.
  • English Press

Tokyo, Jan. 13 (Jiji Press)–The number of corporate bankruptcies in Japan hit a 57-year low in 2021, curbed by the government’s financing support amid the COVID-19 pandemic, a private survey showed Thursday.

 

The bankruptcy number plunged 22.4 pct from the previous year to 6,030, falling for the second straight year to hit the lowest level since 4,212 marked in 1964, according to the survey by Tokyo Shoko Research Ltd., a credit research firm.

 

Total liabilities left by failed companies fell 5.6 pct to 1,150.7 billion yen. The survey covered business failures involving liabilities of 10 million yen or more.

 

The number of pandemic-related bankruptcies, however, doubled from February-December 2020 to 1,668, representing about 30 pct of the total. The restaurant sector made up the largest share, with the number of cases doubling to 300.

 

“Some companies are becoming unable to stay afloat despite government support,” a Tokyo Shoko Research official said.

 

The number of bankruptcies fell in nine of the 10 industry categories covered by the survey.

 

Business failures dropped 22.6 pct to 2,007 among services providers including restaurants and hotels, the first decline in six years, though still the largest among the 10 categories.

 

In December alone, the number of bankruptcies fell 9.6 pct from a year before to 504, marking the seventh straight month of decline and the lowest level for any December since 1989.

 

Tokyo Shoko Research said that there are concerns over more businesses giving up their efforts to keep running and going bankrupt amid the prolonged pandemic.

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