Wire · operational-macro
Yen depreciation no longer guarantees export gains as Japan's traditional advantage fades
Japan's yen depreciation is no longer boosting exports because 36% of manufacturing is now produced overseas; simultaneously, weak yen inflates import costs, squeezing domestic firms and contributing to a 10-year high in corporate bankruptcies.
◆ ◆ The Wire takeaway
If you manufacture in Japan and export globally, currency swings no longer help you—but import bills just got 30% heavier. Japanese firms are filing for bankruptcy at 10-year highs because the playbook that worked for decades has broken.
◆ Coverage
1 source · 18 Jul 2026
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◆ Topics
yen-depreciationmanufacturing-offshoringexport-competitivenessimport-inflationcorporate-stress