COVID-19

COVID Forces Closure Of 35,000 Japanese Companies

Over 35,000 companies in Japan have had to close or go into liquidation in the first eight months of the year – many as a direct result of the COVID-19 pandemic – and there is now speculation in Japanese business circles that the number may move past 53,000 by the end of 2020.

If this happens it will be the highest number of business closures by companies in Japan since 2000, domestic research company / think-tank Tokyo Shoko said this week.

Tokyo - Japan's capitalTokyo - Japan's capital
Tokyo – Japan’s capital

“With the pandemic expected to be prolonged, an increase in companies that discontinue business is unavoidable,” the Japanese think tank said.

Numbering exactly 35,816 from January 1st to the end of August, the total number of companies was up 23.9% year on year, with the majority reported as service-sector companies.

Construction companies came in second at 18% of the total, with retailers making up 13%, Tokyo Shoko’s report said.

Japan on the day it declared emergency measures

Since emergency measures were declared in March by then Prime Minister Shinzo Abe, Japan’s government, in addition to the central bank, have worked to keep the number of companies folding as low as possible.

COVID-19 test

As a nation Japan was hit by its largest ever quarterly slump in the second quarter 2020, on the back of the COVID-19 pandemic first spiking across Japan.

As a result, the third quarter has seem limited growth as Japan’s population remains cautious and industries nationwide work to ride out the pandemic with as little material damage as possible.

Lisa Conklin

Lisa is an Eastender from London in her second year in Taipei where she teaches English, and in her spare time writes poetry. She is a practicing vegan and lover of yoga who lives 'off-grid' as much as possible. She is our weekend editor.

Recent Posts

Robert Francis Prevost becomes first American-born Pope, takes name Leo XIV

In a historic moment for both the United States and the Catholic Church, Robert Francis…

5 days ago

India strikes Pakistan after Kashmir Terror Attack under #OperationSindoor

India carried out a series of airstrikes across Pakistani territory early Wednesday in what it…

7 days ago

Pakistan’s Army Chief looks to confront India after Kashmir terrorist attack

Following a deadly terrorist attack that claimed the lives of over two dozen Hindu tourists…

1 week ago

Mark Carney wins Canadian Election, vows to stand firm against Trump’s threats

Mark Carney, leader of Canada’s Liberal Party, claimed victory early Tuesday in a hard-fought federal…

2 weeks ago

China calls for restraint amid rising India-Pakistan tensions after Kashmir terrorist attack

China urged India and Pakistan to exercise restraint and de-escalate tensions following a deadly terrorist…

2 weeks ago

Trump Says Russia and Ukraine ‘Very Close to a Deal’ After Kremlin Talks

US President Donald Trump said on Friday that Russia and Ukraine are "very close to…

3 weeks ago