Tokyo : Japan witnessed 834 corporate bankruptcies in November 2024, marking a 7.9% increase from the same month in 2023, according to data released by Teikoku Databank. This is the highest number of November bankruptcies since 2013 and represents the 31st consecutive month of year-on-year increases, signaling ongoing challenges in the business environment.

Year-to-Date Trends -From January to November 2024, 9, 053 bankruptcies were recorded, the highest annual total since 2015, with December still to be accounted for.
Total liabilities surged by 72.7%, reaching 152.244 billion yen (approximately $1 billion), compared to 88.15 billion yen in November 2023.
Key Contributors -The largest bankruptcy was that of Nippon Denkai Co., a Tokyo Stock Exchange Growth-listed manufacturer of electrolytic copper foil, with liabilities of 14.761 billion yen. Additionally, two cases exceeding 10 billion yen significantly drove the increase in total liabilities.

Economic Implications – The data highlights the pressures on businesses across various sectors, reflecting Japan’s challenging economic environment. Factors such as rising operational costs, slowing demand, and economic uncertainties are exacerbating financial difficulties for companies.

With this sustained trend, analysts and policymakers are closely monitoring the situation to mitigate further economic fallout.