Arab News Japan

TOKYO: The number of bankruptcies associated with the COVID-19 pandemic continues to rise in Japan with June seeing a record high of 227 and July seeing 26 cases on the first day.

The total annual number of cases in 2021 reached 1,718, more than double that of 843 in 2020. The cumulative total in the first six months of 2022 was 1,029 cases, an increase of just over 30% from the same period last year. The number of cases passed the 1,000 mark about two months earlier than last year.

Expectations for a recovery in consumer spending are rising due to factors such as the resumption of admitting international students and tourists, and the prospect of expanding the scope of subsidized domestic travel. 

Corporate support has also been expanded, including measures related to the government-led “Small and Medium Enterprise Revitalization Package”. However, an increasing number of companies have fallen into excessive debt due to prolonged poor performance.

The “Revitalization Packages” have proven to offer short-term relief only, and it is highly possible that “Covid bankruptcies” will continue to occur at a high level.