Number of bankruptcies in Japan reach 11-year high in 2024

By Alimat Aliyeva

This year, the number of bankruptcy filings in Japan is expected to exceed 10,000, marking the highest level since 2013, Azernews reports.

According to a credit research agency, 841 Japanese companies filed for bankruptcy in November alone, bringing the total number of bankruptcies from January to November to 9,164 — already surpassing last year's total.

The rise in bankruptcies is attributed to a combination of factors, including inflationary pressures, rising energy costs, and supply chain disruptions. Small and medium-sized enterprises (SMEs) have been particularly hard-hit, facing mounting financial difficulties as they struggle to cope with the post-pandemic economic recovery and the global economic slowdown.

The Bank of Japan is scheduled to review its monetary policy on December 18-19. Policymakers will assess the latest economic data to ensure that the country’s fiscal strategy aligns with growth projections, especially as Japan navigates challenges like an aging population and ongoing global uncertainties.

This uptick in bankruptcies could signal broader economic concerns for Japan, with some analysts warning that it could indicate a more fragile recovery than anticipated. The upcoming Bank of Japan meeting will be closely watched, as it could signal shifts in policy aimed at stabilizing the country’s economy.