TOKYO, April 11 (Xinhua) -- Japan saw its number of business failures the first increase in three years since fiscal 2019, according to the latest survey by a credit research company.
The figure stood at 6,799 cases during the period from April 2022 to March 2023, up 14.9 percent year on year, Japan's Teikoku Databank Ltd. said in an online report released on Monday.
It was the first time in 14 years it increased by more than 800 cases from the previous year since 2008 when the global financial crisis took place, according to the report.
During the fiscal year of 2022, total liabilities left by bankrupted companies skyrocketed 97.7 percent from the previous fiscal year to 2.34 trillion yen (17.57 billion U.S. dollars), the report showed.
By industry, the number of bankruptcies grew year-on-year in all surveyed industries, which was also the first in 14 years, according to the report.
The service industry suffered the hardest hit, with bankruptcies up 19.1 percent year on year to 1,699 cases during the period, followed by the retail industry which reported 1,315 cases.
The report said that bankruptcies in the construction industry increased sharply for the first time in three years, mostly due to the prolonged construction period, labor shortage and high material costs.
When the generous cash flow support for businesses ended in fiscal 2022, many small and medium-sized enterprises gave up due to multiple challenges including inflation, labor shortage and Japanese yen depreciation, the report said.
It warned that "zombie companies" which can not pay interest on loans with earned profits need drastic vitalization and should be closely watched for the coming fiscal 2023. ■