Japan sees surge in bankruptcy cases in 2025
Bankruptcy cases in Japan reached a 12-year peak in 2025, with 10,300 companies facing closure due to rising raw material costs and labour shortages. The challenging economic environment, marked by inflation and a tight job market, is expected to keep the Bank of Japan under pressure to raise interest rates. Labour shortages were cited by a record 397 companies that filed for bankruptcy, while sentiment among consumer-focused firms deteriorated, according to surveys.
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