Japan Corporate Bankruptcies Top 10,000 Again as Weak Sentiment and Oil Risks Mount

Japan corporate bankruptcies rose for a fourth straight year in fiscal 2025 and could climb further from around this summer as the Middle East conflict drives up oil prices and squeezes company profits, research firm Teikoku Databank said.

Japan corporate bankruptcies totalled 10,425 in the year ended March, up 3.5% from a year earlier and above 10,000 for a second straight year, as firms grappled with higher input costs and labour shortages.

A government survey also showed business sentiment worsened in March, with the current conditions index falling to 42.2 from 48.9 in February.

The data add to concerns that rising energy costs and supply disruptions could weaken Japan’s recovery and complicate the Bank of Japan’s rate decision later this month, reinforcing risks linked to Japan corporate bankruptcies trends.