Snapshots of Japan: Japan bankruptcies hit 11-year high on cost pressure. Summary By Scott NEYLON & Co.

Summary by Scott NEYLON & AI:

1. Business bankruptcies in Japan surged 15.1% in 2024, reaching 10,006 cases—the highest in 11 years—due to rising material and labor costs.

2. Factors contributing to bankruptcies included higher prices, a weak yen, energy costs, and labor issues, with the wholesale and construction sectors most affected.

3. Despite the rise, total liabilities decreased by 2.5%, and large-scale bankruptcies remained rare, mitigating broader economic risks.

4. Succession-related mergers and acquisitions increased 32.5%, offering struggling businesses potential revitalization as aging leadership persists.

5. Demographics play a key role, with Japan's aging population and shrinking labor force likely to drive a moderate increase in bankruptcies in 2025.

   SOURCE: https://asia.nikkei.com/Business/Business-trends/Japan-bankruptcies-hit-11-year-high-on-cost-pressure