The number of bankrupt businesses in Japan continues to increase and will reach 42.9% in early 2024. According to The Japan Times, Japan’s collapse occurred after the global financial crisis in 2008. A total of 1,016 companies have undergone liquidation. This figure is considered quite scary because it reaches more than 1,000. This is the highest in the last 12 years.

Many businesses are bankrupt. What Are the Signs of Japan Collapse?

According to CNBC, businesses that collapsed had debts of at least 10 million yen. One of the companies that went bankrupt also operated in the transportation sector. Bankruptcy in this line has more than doubled. Meanwhile, other business sectors that also slowed down were in the restaurant and bar sectors by up to 25%.

Most companies also said that they had a shortage of workers because the country lacked a young generation. Some companies even try to recruit the younger generation in Japan, even though they come from foreign nationalities.

Tokyo Shoko Research also released data showing that the total debt of companies that collapsed reached 136.7 billion yen in May. The wave of bankruptcies got worse when the yen exchange rate weakened, causing many costs to rise. The weakening yen means that many companies need to pay higher costs for importing raw materials. The impact of the increase in imported prices for raw materials has made many small and medium companies unable to make a profit.

The weakening yen exchange rate also causes many companies to pay more expensively for energy supplies, including oil. As a result, many construction companies also experienced bankruptcy. This condition was also made worse by the withdrawal of the COVID-19 loan stimulus.

The Japanese government is also trying hard to ensure that its country is able to survive on the brink of bankruptcy. Although there is a possibility that this country could experience even more serious bankruptcy in the future,.

If you want to know more about Japan recession, you can read on One Pro News.

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