According to a new survey by Teikoku Databank, company bankruptcies in Japan increased for the first time in three years in 2022.
According to the report, 6,376 companies declared bankruptcy in Japan in 2022, marking a 6% rise over the figures in 2021. Total debt for those companies rose markedly by almost 104%, to 2.37 trillion yen (over $18 billion), although the research firm was quick to point out almost half of that was attributable to one company alone, auto parts supplier Marelli holdings, which sought bankruptcy protection in June.
Trade was the only industry sector which did not see the number of companies filing for bankruptcy increase in 2022, according to the report. Among the worst affected sectors was the services sector, including hotels, non-governmental organizations, language schools and other businesses. According to the data, 1,600 services companies filed for bankruptcy, which marked an increase of 12.4% over 2021.
Tohoku was the region which showed the largest increase in bankruptcies, with the total number rising 50% over the previous year.
In a separate report released last Friday, Teikoku Databank noted the number of bankruptcies attributable to rising prices in 2022 increased by 2.3 times compared to 2021.
In December, inflation in Japan hit 40 year highs as energy cost soared. According to data from the nation’s Ministry of Internal Affairs, inflation in Tokyo reached 4% last month for the first time since 1982, exceeding estimates by economists.