By Sahika Olgun
ISTANBUL (AA) – The bankruptcy rate among Japanese corporate firm increased by 22% in the first half of 2024 compared to the same period in 2023, the Tokyo Shoko Research Organization announced on Monday.
Total financial liabilities left by insolvent firms rose 22.8% year-on-year to 721 billion Japanese yen ($4.49 billion).
While 4,931 firms declared bankruptcy in the first six months of the year, the figure was the highest in the last 10 years, it said, citing the Japanese yen's recent depreciation and rising raw material costs as reasons.
In addition, the services sector experienced the most bankruptcies, with 1,619 firms, while 947 construction companies filed for bankruptcy.
"The number of bankruptcies could exceed 10,000 by 2024 as more firms pass on rising costs to customers," it added.