Japan corporate bankruptcies up 16% on year
New analysis from Tokyo Shoko Research has revealed a 15.8% rise in corporate bankruptcies in Japan, compared with the previous year.
For the year to 31 March, the number of bankruptcies among listed companies in Japan hit a record high for any financial year since the Second World War, according to Tokyo Shoko Research.
The organisation said that smaller companies have been hit particularly hard since banks have been focusing their attention on bigger rivals.
Tokyo Shoko Research also said that bankruptcy has been particularly noticeable among manufacturers as carmakers globally have slashed production as consumers cut back on expensive items.
Electronic companies in the country have also been affected by the increase in value of the yen, depreciating overseas revenues.
With regard to the short-term, bankruptcies are not likely to slow down since car and electronics manufacturers continue to be hit by the economic downturn, explained Tokyo Shoko Research.
In the third quarter of last year, Japan entered its first recession since 2001. The country has been hit by falling exports as global demand for its products has slumped.