TOKYO, April 8 - Japan’s corporate bankruptcy cases rose for the fourth consecutive year in fiscal 2025, reaching 10,425, according to Teikoku Databank.
The increase reflects growing pressure from rising input and labor costs, even before the U.S.-Israel strikes on Iran in February triggered a surge in oil prices and global supply disruptions.
"There is growing concern among firms about rising input costs," the think tank said. "Crude oil prices have pushed up prices across industries, from fuel and chemicals to plastics and fertilizers."
Teikoku Databank forecasts a further spike in bankruptcies beginning summer 2025, with fiscal 2026 likely to see continued growth.
This trend aligns with a recent Bank of Japan report warning of economic headwinds from energy costs and supply chain issues.
The central bank’s upcoming April 27-28 policy meeting will hinge on balancing these risks against inflation pressure.