Bankruptcies on the Rise in Japan due to Pandemic

Bankruptcies on the Rise in Japan due to Pandemic

Teikoku Databank, a credit research firm, reports that around 1,107 bankruptcies hit Japan as of the end of February due to the COVID-19 pandemic.

 

The most affected businesses are the bars and restaurants followed by the construction industry and hotels. The notable increase in bankruptcies in urban areas were said to be due to the state of emergency declaration limiting the capacity and operations of these businesses. There was also a great significant decline in inbound tourism which affected numerous businesses in the accommodation and food industry.

 

It is said that with the further extension of the state of emergency, there will be an unavoidable long-term decline in personal spending, thus resulting in more bankruptcies across urban areas in Japan. 

 

There were 264 reported bankruptcies in Tokyo, while 108 in Osaka Prefecture and 64 in Kanagawa Prefecture.

 

Reference: https://www3.nhk.or.jp/nhkworld/en/news/20210303_23/

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