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2026-04-08 14:12:16
[Japanese Think Tank Warns: Soaring Costs and Labor Shortages Could Lead to a Surge in Bankruptcies After Summer] 1. Teikoku Research Bank (TDB), a private think tank, reported that the number of corporate bankruptcies in Japan will increase for the fourth consecutive year in fiscal year 2025, reaching 10,425, a 3.5% increase from the previous year, and exceeding 10,000 for the second consecutive year. Companies are facing the dual challenges of rising input costs and labor shortages. 2. TDB pointed out that even before the US-Israel attacks on Iran in late February, which escalated the Middle East conflict, companies were already under pressure due to high input and labor costs. With soaring oil prices, prices for fuels, chemical products, plastics, building materials, and fertilizers have risen across the board, exacerbating companies' concerns about rising costs. 3. The agency warned that Japan may experience a surge in bankruptcies starting around summer, with the number of bankruptcies expected to increase further in fiscal year 2026. This aligns with the Bank of Japan's regional branches' quarterly report on Monday, which warned that soaring oil prices and supply disruptions could damage the economy. 4. The Bank of Japan will weigh the downside risks to economic growth against inflationary pressures at its policy meeting on April 27-28, using this as a key factor in deciding whether to raise interest rates.
