The number of insolvencies has reportedly risen for the first time in three years
Japan recorded its first increase in the number of company bankruptcies in three years in 2022, according to a new survey by Teikoku Databank.
The report showed that a total of 6,376 companies declared bankruptcy in the country last year, which is 6% higher than in 2021. Those companies' total debt soared almost 104% to 2.37 trillion yen (over $18 billion), but almost half of that came from auto parts supplier Marelli Holdings, which filed for bankruptcy protection in June.
The only industry that did not record an increase in the number of bankruptcies among companies was trade, said the report. Meanwhile, the services sector, which includes hotels, non-governmental organizations, language schools and others, was one of the worst affected. Data showed that 1,600 service companies filed for bankruptcy last year, up 12.4% from 2021.
The region with the largest increase in the number of bankruptcies was Tohoku, up 50% from the previous year.
READ MORE: Japanese cut spending amid highest inflation in 40 years - survey
According to a separate report published by Teikoku Databank last Friday, the number of bankruptcies as a result of rising prices in 2022 increased by 2.3 times compared to the previous year.
Inflation in Japan hit 40-year highs in December due to soaring energy costs. Data from the country's Ministry of Internal Affairs showed that price growth in Tokyo last month exceeded forecasts and reached 4% for the first time since 1982.
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