Staff Reporter
Japan recorded a total of 10,144 bankruptcy filings in fiscal year 2024, marking the highest number in 11 years, according to Tokyo Shoko Research (TSR). This increase comes amid growing uncertainties regarding the Bank of Japan’s interest rate hike plans.
The bankruptcy count for the year ending in March was the largest since the 10,536 filings in fiscal 2013, reflecting a 12% rise from the previous year. Most sectors experienced an uptick in bankruptcies, with the exceptions being the financial and transportation industries.
In terms of debt, the total amount in bankruptcies fell to 2.37 trillion yen (approximately $16.08 billion) in fiscal 2024, down from 2.46 trillion yen in fiscal 2023. This decline is attributed to a relatively higher number of small- and mid-sized firms going bankrupt, TSR noted.
The largest debtor was the former Mitsubishi Aircraft Corp, which was liquidated last year with 641 billion yen in debt following the discontinuation of the Mitsubishi SpaceJet commercial airplane project.
Bankruptcy statistics are closely monitored by Bank of Japan policymakers as an indicator of the economy’s health. Governor Kazuo Ueda has indicated that the central bank will continue to raise interest rates if ongoing wage increases, particularly among smaller firms, support consumption-driven economic growth.
