COVID-19 PANDEMIC LED TO THE INCREASE IN THE NUMBER OF LARGE BANKRUPTCIES IN JAPAN

Some of the conclusions made by the experts were published by the national news agency Jiji Press.

An analysis of the situation showed that in the first four months, 25 corporations went bankrupt in the country, and the total amount of their debt exceeded 1 billion yen. For comparison, the researchers cite data that a similar number of bankruptcy cases (24 companies) were registered in 2020 for six months, with 10 companies going bankrupt from July to September and 14 more from October to December.

At the beginning of the year, experts from Tokyo Shoko Research noted a decrease in the number of 2020 bankruptcies.

The rating agency then stated that the number of small businesses with debts of less than 10 million yen, which went bankrupt due to the pandemic, increased by 23%. This was due to the action of government support measures provided to the small and medium-sized businesses.

Self-isolation and the shift to remote forms of business have resulted in the telecommunications and retail industries being the least affected. In this sector, the decline in the number of bankruptcies reached the maximum.

In the field of communications, it decreased by 22.1%, and in the retail sector - by 14.3%.

However, the same cannot be said about such market segments as tourism and hotel business, construction industry and mechanical engineering. Here the situation turned out to be critical. Local experts have noted a significant increase in the number of bankruptcies among large corporations that have found themselves vulnerable in the extraordinary recession that the country's economy is experiencing.