The number of corporate bankruptcies in Japan in November hit a 56-year low for the month, thanks to the government’s continued financing support amid the COVID-19 pandemic, a private survey showed on Wednesday.
The figure dropped 10.3% from a year before to 510, down for the sixth straight month, according to the survey by Tokyo Shoko Research Ltd.
Total liabilities left by failed companies fell 7.8% to ¥94,101 million.
The survey covered business failures involving liabilities of ¥10 million or more.
Meanwhile, the number of pandemic-related bankruptcies reached 172, hitting a record high for the third month in a row.
The ratio of companies that went bust for reasons linked to the coronavirus crisis to the total bankruptcies rose to one in three.
Among the 10 industries surveyed, five posted drops in the number of bankruptcies. The number of bankruptcies in the restaurant, bar and other services sector sagged 26.2% following the full lifting of the government’s COVID-19 state of emergency at the end of September.
Meanwhile, the number of bankruptcies among wholesalers grew 7.4%, while that of those in the real estate sector increased 12.5%.
The construction industry had the largest number of bankruptcies related to the pandemic, at 22, reflecting reviews of construction projects.
The number of bankruptcies is not forecast to surge in the future, “but it may grow in stages due chiefly to soaring materials and personnel costs,” said a Tokyo Shoko Research official.
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