Japanese think tank warns: soaring costs combined with labor shortages may lead to a surge in bankruptcies after summer

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汇通财经2026/04/08 06:14

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Private think tank Teikoku Databank (TDB) stated that the number of corporate bankruptcies in Japan increased for the fourth consecutive year in fiscal 2025, reaching a total of 10,425 cases, a 3.5% increase compared to the previous year, and surpassing the 10 thousand mark for the second year in a row. Companies are currently facing the dual challenges of rising input costs and labor shortages.
TDB pointed out that even before the escalation of Middle East conflicts caused by US and Israeli strikes on Iran at the end of February, businesses were already under pressure from high input and labor costs. As crude oil prices soared, fuel, chemical products, plastic goods, building materials, and fertilizers saw widespread price increases, leading to mounting concerns over rising costs among companies.
The institute warned that Japan could experience a surge in bankruptcies around the summer, and the number of bankruptcy cases is expected to increase further in fiscal 2026. This matches the Bank of Japan’s regional branch quarterly report released on Monday, which warned that surging oil prices and supply disruptions could harm the economy.
The Bank of Japan will weigh downside risks to economic growth against inflationary pressures at its policy meeting on April 27-28, using this assessment as a key basis for deciding whether to raise interest rates.

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Japanese think tank warns: soaring costs combined with labor shortages may lead to a surge in bankruptcies after summer

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