Source: Japan Today | Editor: Prihastomo Wahyu Widodo
KONTAN.CO.ID – TOKYO. Nearly 36,000 companies in Japan have been forced to close their businesses due to the impact of the new coronavirus. The number of companies that have closed this year has grown dramatically since the pandemic.
The total number of companies that have closed business, but are not bankrupt, is estimated to reach 53,000 by the end of 2020. Tokyo Shoko Research reports, this number will be the highest since similar data began to be collected in 2000 ago.
“With the pandemic expected to be prolonged, it is inevitable that an increase in the number of companies going out of business is inevitable,” Tokyo Shoko Research said in a statement. Japan Today.
The research institute noted that there were 35,816 companies that closed in the January-August 2020 period. This number increased to 23.9% from the same period last year.
This figure is equivalent to 1% of all companies in Japan, which total 3.58 million companies. If broken down, 31% of companies that closed their business came from the services sector, 18% from the construction sector, and 13% from the retail sector.
Also Read: In a wave of bankruptcies in Japan, nearly 500 companies went bankrupt during the pandemic
The Japanese government and the Bank of Japan central bank have taken a number of steps since March to prevent the closure of the business unit.
Some companies are struggling to survive not because of the financial crisis, but because of the prospect of declining demand.
The corona virus pandemic is very challenging for the Japanese economy. The land of the rising sun experienced the biggest economic downturn in the second quarter.
Analysis predicts the Japanese economy in the third quarter will experience only a slight recovery. Japan will continue to feel this economic impact for the next few years.
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