© Reuters. FILE PHOTO: Izakaya, a Japanese-style dining bar, closes at 20:00 local time amid an outbreak of coronavirus (COVID-19), in Tokyo
By Leika Kihara
TOKYO (Reuters) – Japan’s bankruptcy of “izakaya” eateries hit record highs for the year ending in March, a sign that some firms in the service sector are being immediately left behind. even when the economy emerged after the corona virus pandemic shock.
The rebound of global growth and domestic consumption helped the world’s third-largest economy to recover from a doldrums, with business confidence improving to pre-pandemic levels in the first quarter.
But industries once hit the hardest, such as restaurants, are likely to remain under pressure as Japan plans to put Tokyo in a month-long “near emergency” state to fight the schools. COVID-19 combination increased.
A total of 175 “izakaya” bars – a major pillar of Japanese working culture and late-night drinking – were in operation in fiscal 2020, up 17 percent from a year ago and the highest level ever. since there were comparable data two decades ago, think tank Tokyo Shoko Research said Friday.
“People stay away from bars to avoid crowds,” Tokyo Shoko Research said. “Small restaurants are also incurring the cost of investing in equipment to stop the spread of viruses such as partitions.”
Tokyo Shoko Research says wedding party operators are also affected as people refrain from holding large parties, with nine of them to be held in fiscal 2020, up for a second year. consecutive, said Tokyo Shoko Research.
A separate government survey found that while service-sector sentiment improved in March, an indicator of the outlook worsened due to concerns about a recurrence of infections.
“The Japanese economy as a whole is recovering from the pandemic disaster as a whole. But direct service sectors are being completely left behind,” said Taro Saito, an economist at the NLI Research Institute.
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