Current Economic
Climate in Kyushu

Kyushu Economic Research CenterContents
 Location and size of Kyushu
 Characteristics of Kyushu’s economy
 Kyushu’s main industries
 Kyushu’s largest city: Fukuoka City
 Current economic conditions in Kyushu

2

Kyushu Economic Research Center

Location of Kyushu●SAPPORO

TOKYO
OSAKA
FUKUOKA

KYUSHU

3

Kyushu Economic Research Center

Asian continent and Japan/Kyushu

Tokyo

KYUSHU

Osakaz Naha

Fukuoka

SapporoBusanTaipei
Vladivostok● SeoulFuzhouHong Kong

Shanghai
QingdaoNanjing
Guangzhou

DalianHarbinShenyang

Wuhan
TianjinBeijing

4

Source: Prepared by Kyushu Economic Research Center

Kyushu Economic Research Center

Geographic location of Kyushu
from FUKUOKA• 200 km: Busan, Hiroshima• 500 km: Seoul, Osaka• 1,000 km: Shanghai, Dalian, Tokyo• 1,500 km: Beijing, Taipei, Sapporo

BeijingSeoul

Fukuoka

Osaka

Tokyo

ShanghaiTaipei

http://www.pref.fukuoka.lg.jp/somu/ken-dayori/201309/html/special.html

5Kyushu Economic Research CenterIndustries representing over 10% in terms of size in Japan–Industry groups earning foreign currencies• Agricultural production1.8 trillion yen･･･ 21.3%･･･ 23.1%• Production of forest raw materials 4.64 million m3• Fish catch including fish farming 830,000 tons･･･ 17.6%• Crude steel production
15.70 million tons･･･ 14.9%• Steel ship production
3.78 million gross tons ･･･ 30.0%• Integrated circuit production
0.6 trillion yen･･･ 27.0%• Vehicle production
1.19 million vehicles ･･･ 12.8%(2014)(2015)(2014)(2015)*(2015)#(2015)*(2015)*

Note: Figures are those for eight prefectures in Kyushu (including Okinawa).
*: Excludes Okinawa. #: Includes Yamaguchi Prefecture.

66
Kyushu Economic Research Center

Kyushu’s position in the global economy
GDP of major countries (2013)
0CanadaBrazilRepublic of Korea
Spain
MexicoRussian Federation
Australia
Netherlands
TurkeyIndonesia
Kyushu's 8 prefecture
Switzerland
Saudi Arabia
SwedenBelgium
PolandAustria
NorwaySouth Africa
Nigeria
Argentina
Denmark
Iran (Islamic…
Thailand(Million dollars)

5,000,000

10,000,000

GDP per capita of major countries (2013)

15,000,000

0Australia
GermanyFinland
Japan
CanadaBelgium
Singapore
FranceAndorra
China, Hong Kong SARGreenlandKyushu's 8 prefecture
New Caledonia
British Virgin Islands
New Zealand
ItalyKuwait
Brunei Darussalam
United Arab Emirates
IsraelSpain
Republic of Korea
Sint Maarten (Dutch part)
Cyprus

10,00020,00030,000(USD)

40,00013,309,114
12,106,178
11,990,063
11,523,281
10,436,701
9,939,464
9,485,739
7,257,087
6,540,687
4,781,142
4,775,834
4,763,350
4,459,870
4,361,956
4,200,256
4,180,115
3,479,494
3,387,156
3,243,788
2,878,107
2,754,202
2,739,858
2,652,208
2,525,733

50,00040,76339,53039,17838,91437,777
37,66037,62735,66635,18633,75533,31632,88931,331
29,91429,68529,30728,164
27,177
26,48025,34724,80524,054
22,27522,145Note) Real: Fixed-base method (Base for 2005)
Source: “National Accounts Main Aggregates Database” by United Nations , “Prefectural Accounts” published by the Cabinet Office,7

Kyushu Economic Research CenterContents
 Location and size of Kyushu
 Characteristics of Kyushu’s economy
 Kyushu’s main industries
 Kyushu’s largest city: Fukuoka City Current economic conditions in Kyushu

8Kyushu Economic Research Center

Japan is transforming into a society
with a shrinking population
Japan’s long-term population projection (by population composition)
140

Total population
128.06million

120

Youth population
16.84 million（13.1%）

Total population
104.67million

Total population
86.74million

100
Youth population
Youth population
25.17million（24.0%）

80

Working-age
population
81.74million（63.8%）

60

Youth population
7.91million（9.1%）

Working-age
population

Working-age
population
44.18million（50.9%）

Working-age
population
72.11million（68.9%）

40Elderly population
29.48million（23.0%）

Elderly population
7.39million（7.1%）

20

Elderly population
34.64million（39.9%）

Elderly population

01950

1955

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

2015

2020

2025

2030

2035

2040

2045

2050

2055

2060

Note：Youth population 0～14、 Working-age population 15～64、Elderly population 65～
Source: “Population Projection for Japan: 2011-2060 (January 2012)” by National Institute of Population and Social Security Research

9

Kyushu Economic Research Center

Kyushu’s population is also
increasingly shrinking•

九州の市区町村別人口将来推計（2010－2040年）

Kyushu/Okinawa: 2010 → 2040
– 14.60 million →12.12 million– A decrease of 2.48 million (17.0%)
Population change and forecast

Source: 2014 Outline of Kyushu’s Economy (page 12)10(thousand persons)

Source: 2014 Outline of Kyushu’s Economy (page 13)

Kyushu Economic Research Center

Kyushu’s industries have grown ina multi-layered manner.
1950

1960

1970

1980

1990

2000

2010

Agricultural,forestry, fisheryand food industries
Smokestackindustries(Coal, steel, chemical,shipbuilding, etc.)
Processing andassembly industries(Automobile,semiconductor, electronicparts, etc.)

Service industry(Tourism, health,
medical, welfare, etc.)

Clean industry(Environment,renewable energy,etc.)
11

Kyushu Economic Research Center

Main foreign currency-earning industries
Trends of rankings of net outflows/exports from Kyushu
Ranking
1st1970

Rolled steel products Rolled steel products

450,001
nd

2

3

th

4

th

5

610,950

1990

2000

2005

Steel products

Other electronic/telecommunications
machinery

Automobile

498,830

1,352,474

991,916

Ceramic, stone, and Agricultural, forestry Agricultural, forestry Agricultural, forestry
clay products
and fisheryand fisheryand fishery

136,220
rd1980(Million yen)

331,732

Agricultural, forestry Ceramic, stone, andand fisheryclay

Electronic parts

492,101

405,642

969,467

Electronic machinery

Steel

Steel

108,654201,249

300,030

287,810

511,162

Basic chemicalproducts

Pig iron/crude steel

Ceramic, stone, andclay products

Automobiles

Agricultural, forestry
and fishery

92,214

188,628

199,086

216,462

270,970

Chemical fiber raw
materials

Other transportation
machinery

Rubber products

Ceramic, stone, andclay products

Food and beverages

64,966

184,385

142,141

177,767

240,514

Note 1: Excludes tertiary industries.
Note 2: Net outflows/exports = (outflow amount + Export amount) – (Inflow + Import)
Source: Prepared by Kyushu Economic Research Center using “Interregional Input-Output Table” published by Ministry of Economy, Trade and Industry.

12Kyushu Economic Research Center

Kyushu’s export ratio is high–Building an economic
structure for achieving growth together with Asia
Trends of export ratios by regional bloc (manufacturers)
Hokkaido

Tohoku

Kanto(Tokyoarea )Chubu(Nagoyaarea)

Kinki(Osakaarea)

Chugoku

Shikoku

KyushuOkinawaAll Japan

Source: “Interregional Input-Output Table” published by Ministry of Economy, Trade and Industry.

13

Kyushu Economic Research Center

Kyushu‘s GRP accounts for national GDP 10%
 Ratio of Kyushu‘s GRP among national GDP is stable in around 10%.
Trends of GRP of Kyushu and Yamaguchi asa percentage of national GDP
11.0%

10.0%

9.0%

8.0%

7.0%

6.0%

5.0%
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: “Annual Report on Prefectural Accounts” published by the Cabinet Office

14

Kyushu Economic Research Center

Manufacturers are maintaining high operating rates■Kyushu’s industrial production has started to surpass national figure.
Trends of industrial production indexes (comparison ofrates (national and Kyushu))

140.0
130.0

1979.1～2017.1の平均＝100Japan

120.0
110.0
100.0
90.0
80.0

KyushuKyushu ＞Japan

70.0
60.0
50.0

Japan＞Kyushu
1 8 3 10 5 12 7 2 9 4 11 6 1 8 3 10 5 12 7 2 9 4 11 6 1 8 3 10 5 12 7 2 9 4 11 6 1 8 3 10 5 12 7 2 9 4 11 6 1 8 3 10 5 12 7 2 9 4 11 6 1 8 3 10 5 121979 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 2000 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 1
7Source: “Industrial Production Index” published by Ministry of Economy, Trade and Industry

15Kyushu Economic Research CenterContents
 Location and size of Kyushu
 Characteristics of Kyushu’s economy
 Kyushu’s main industries
 Kyushu’s largest city: Fukuoka City
 Current economic conditions in Kyushu

16Kyushu Economic Research Center

Car Island Kyushu• Four automotive companies (Nissan Motor Kyushu, Nissan Shatai Kyushu,Toyota Motor Kyushu, and Daihatsu Motor Kyushu) have their finished vehicle
plants in Kyushu, with a total production capacity of 1.54 million vehicles.
• In 2015, 1.33 million vehicles were produced.
Production capacity(10 thousand)established

Trends of number of vehicles produced<8 prefectures in Kyushu>
NISSANMOTOR
KYUSHU

Fukuoka
Prefecture

NISSANSHATAIKYUSHU

Fukuoka
Prefecture

TOYOTA
MOTOR
KYUSHU

Fukuoka
Prefecture

DAIHATSU
MOTOR
KYUSHU

Oita
Prefecture

Source: 2017Outline of Kyushu Economy (page 32)

17Kyushu Economic Research Center

Silicon Island Kyushu• In Japan, many semiconductor factories have been forced to reorganize, but onefourth of semiconductor production in Japan is still carried out in Kyushu.
• The main factories of semiconductor manufacturing equipment and silicon wafers arealso located in Kyushu.
Trends of IC production volumes< 8 prefectures in Kyushu>

Source: 2017 Outline of Kyushu Economy (page 32)

18

Kyushu Economic Research Center

Office locations–Leading automotive companies

Source: 2017Outline of Kyushu Economy

Office locations–Leading companies handling electronics
products/electronic devices

Kyushu Economic Research CenterFood Island Kyushu• Agricultural production amounted to 1.7 trillion yen, 20% of nationalproduction.
• South Kyushu is famous for its livestock farming, as well as forestry
and fishery industries.
• Fresh food materials are available for its prospering food industry.

Agricultural production by bloc andby food material (2014)

Source: 2017 Outline of Kyushu Economy (page 26)

20

Kyushu Economic Research Center

Onsen Island Kyushu••

21

There are a variety of tourist attractions (e.g. nature, history, and foods) across Kyushu, with onsen as thecentral attraction because there are more hot spring sources and larger volumes of hot spring water than in any
other region.
The number of foreigner visitors to kyushu,Japan increased 3.2 times in 10 years (2005: 630,000 -> 2015:2,050,000)

Kyushu Economic Research CenterSolar & Geothermal Island Kyushu
The authorized facilities output of the renewable energy（As of the end of November, 2016）

Geothermal power plant for business

Solar
Hokkaido
Tohoku
Kanto
KyushuHokkaido
Tohoku
Kanto
Chubu
Kinki
Chugoku
Shikoku
KyushuOkinawa

The number of thepower stations
1615

The authorization
output（kW)50,000259,800
3,300
212,000

main hot springs targeted for an application of the hotspring heat generation without digging
0（MW）

5,000

10,00015,00020,00025,000

Other renewable energy
WindHydraulicBiomass

Geothermal

Hokkaido
TohokuKantoChubu
Kinki
Chugoku
Shikoku
KyushuOkinawa
01,0002,000

Source: Kyushu Bureau of Economy, Trade and Industry

223,000
Source:NEDO(2010)

Kyushu Economic Research Center

Kyushu-Okinawa Earth Strategy for growth industries•Announced in March 2014 by the Conference of Industrial Competitiveness in Kyushu
and Okinawa.

Clean Industry

Healthy
Smart City

Energy & Environment
SmartAgriculture

HealthEarth

Agricultural/Forestry/
Fishery/Food Industries
Agriculture

23

Medical/Healthcare/
Cosmetics Industries

Healthcare
Tourism

Tourism Industry
Foods/GreenTourism

Tourism

Kyushu Economic Research CenterLeading companies headquartered in Kyushu（Kyushu Electric Power） （TOYOTA MOTOR KYUSHU）（Sony Semiconductor Corporation）（TOTO LTD）

（ Daihatsu Motor Kyushu ）（Coca-Cola West ）（Shin-Idemitsu）（ASTEM, Inc）

（Kyushu Railway Company）（KYUDENKO CORPORATION ）（Saibu-gas）

24（YASKAWA ELECTRIC CORPORATION）（Nishi-Nippon Railroad ）（Hisamitsu Pharmaceutical ）（Oita Canon）（BEST DENKI ）（ASO GROUP）（PLENUS）
Kyushu Economic Research Center

Companies in Kyushu that carry on Japanese traditions

Mechanical dolls
Two-arm robot of Yasukawa Electric(Kita Kyushu City)

Ceramics(Kyushu is a leading
region for ceramic
production in Japan.)25

Latest model of washlet toilet of TOTO (Kita Kyushu City)

Kyushu Economic Research Center

Companies in Kyushu that carry on Japanese traditions

Animal-human Caricatures(12th – 13th century)
Yokai Watch 2, a video game released by Level-5(Fukuoka City)

Zen (Zen meditation)

26

Pinball game

Aji Shuchu Counter (individuallypartitioned counter) of Ichiran, a Hakata
ramen restaurant (Fukuoka City)

Kyushu Economic Research CenterContents
 Location and size of Kyushu
 Characteristics of Kyushu’s economy
 Kyushu’s main industries
 Kyushu’ largest city: Fukuoka City
 Current economic conditions in Kyushu

27

Kyushu Economic Research Center

Kyushu’s largest city: Fukuoka City
 City population: 1.5 million; Population of the city and surrounding areas: 2.5 million
 Compact city with urban functions, airport, railway stations, and port located within a radiusof 3 km

Waterfront
Convention zone
International seaport

Fukuoka Airport

Hakata Station
Downtown

Kyushu Sinkansen
City hotel 23,000 rooms

28

http://www.kantei.go.jp/jp/singi/tiiki/toshisaisei/yuushikisya/250328/1.pdf

Kyushu Economic Research CenterGlobal Power City Index（JAPAN） -2016
1

London21

Istanbul

2

New York

22

Osaka

3

Tokyo

23

Brussels

4

Paris

24

San Francisco

5Singapore25

Chicago

6

Seoul

26

Madrid7

Hong Kong

27

Boston8

Amsterdam

28

Vancouver

9

Berlin29

Washington D.C.

10

Vienna30

Geneva11Frankfurt

31

Milan12

Shanghai

32

Kuala Lumpur13Los Angeles

33

Taipei14

Sydney34

Bangkok

15

Stockholm

35

Moscow

16

Zurich36

17

Beijing37

18

Toronto38

Sao Paulo19

Copenhagen

39

Mumbai20

Barcelona

40

Jakarta

Fukuoka
Mexico City

Source: “Global Power City Index 2016” published by the Institute for Urban Strategies (Mori Memorial Foundation) in October 2016

29

Kyushu Economic Research CenterGlobal City Competitiveness (USA) -2012

Source: “Hot Spots: Benchmarking Global City Competitiveness” published by Citi Bank（2011)30

Kyushu Economic Research CenterMost Livable Cities (U.K) -2016
Rank City

Rank City

1Tokyo13

Zurich2

Berlin14

Madrid3

Vienna15

Hamburg4

Copenhagen

16

Lisbon5

Munich17

Dusseldorf

6Melbourne

18

Hong Kong

7 Fukuoka

19

Barcelona

8

Sydney20

Singapore

9

Kyoto

21

Amsterdam

10

Stockholm

22

Auckland11

Vancouver

23

Honolulu

12

Helsinki

24

Portland25

Montreal

Source: “Monocle’s New Quality of Life Top 25 Cities Survey” Monocle（2016）31

Kyushu Economic Research CenterFukuoka City has plentiful human resources and affordable rents•••

Students to population ratio
ranks third in Japan.
Office rent is about 50% ofthat in Tokyo.
Residential rent is about
48% of that in Tokyo.

Office rent (monthly) (February 2017)
6,000
5,000
4,000

3,287

3,365

3,291
2,823

3,000
2,000
1,0000（¥/㎡）Students to population ratio

5,653

3,000Tokyo

Yokohama

Osaka

NagoyaFukuokaResidential rent (monthly housing rent)(February 2017)

2,594
2,500

Kyoto
TokyoFukuoka

2,118
2,000

1,768
1,489

1,500

1,237

1,0005000（¥/㎡）

Special features of September 2016 Edition of Statistics on Fukuoka
http://www.city.fukuoka.lg.jp/data/open/cnt/3/7274/1/201609HPSP.pdf

32TokyoYokohama

Osaka

NagoyaFukuoka

Source:“MIKI OFFICE REPORT” published by Miki Shoji Co.,ltd.,“Retail price survey ” published by Statistics Bureau, Ministry of Internal
Affairs and Communications

Kyushu Economic Research CenterNational Strategic Special Zones (March 2014)•Six regions have been designated nationwide. Fukuoka City aims to be a Special
Zone for Global Startups and Job Creation.

Niigata City, Niigata Prefecture
Base for large‐scale agricultural reforms

Kansai area (Osaka/Hyogo/Kyoto)
Innovation base for medical industries; Support for personnel

Yabu City, Hyogo Prefecture
Base for agricultural reform in semi‐
mountainous areas

Tokyo area (Tokyo/Kanagawa/NaritaCity, Chiba)
Base for international business and innovation

Fukuoka City, Fukuoka Prefecture
Base for employment reforms to promotebusiness creation

Okinawa
Base for international tourism

33

Kyushu Economic Research CenterContents
 Location and size of Kyushu
 Characteristics of Kyushu’s economy
 Kyushu’s main industries
 Kyushu’s largest city: Fukuoka City Current economic conditions (latest trends) in Kyushu

34

Kyushu Economic Research Center

Kyushu’s economy in 2017z Since 2015, the growth rate of Kyushu’s GRP rises gradually.
z In 2017, the rate of Kyushu is forecasted to increase to 1.9%, a level will
exceed national GDP growth rate for the first time in three years.
Trends of real economic growth rates and forecasts
％

3.5
3.0
2.5
2.0

Japan GDPKyushu GRP

1.3

1.3

2.6
1.9

1.8

1.5
1.0

1.5

1.3
0.9

0.5
0.0
‐0.4

‐0.5
‐1.0

‐1.3
‐1.5
2013

20142015Note) Real: Fixed-base method (Base for 2005)
Source: “Prefectural Accounts” published by the Cabinet Office, and estimates and predictions by Kyushu
Economic Research Center352016

2017

FY

Kyushu Economic Research Center

Characteristics of 2017 figures••2016– The pace of recoveryaccelerate.
– But, wage growth rate inKyushu will be low fornationwide .
– Improvement of tradebalance keep on byincreasing foreign tourists .
2017– Steady recovery after 2016
Kumamoto Earthquake.
– Population decline will bebottleneck for economicgrowth.
– Increase of export due torecovering world economy.

GRP

FY2016FY2017

Kyushu

＋1.3%

＋1.9%

Japan

＋1.3%

＋1.5%

Trends of growth rate of Kyushu’s economy (real); Contribution
7%
6%
5%

⺠間消費

住宅投資

設備投資

政府消費

公共投資

純移輸出

5.5%
1.8%

4%
3%

0.8%

2%

1.9%

0.4%

1.8%

1.5%

0.9% 1.3%

1.9%

1%
0%
-1%
-2%

-1.0%

-3%
-4%

-2.7%

-1.3%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
実績

実績

実績

実績

実績

実績

実績

実績

実績

推計

推計

予測

予測Note) Real: Fixed-base method (Base for 2005)
Source: “Prefectural Accounts” published by the Cabinet Office, and estimates and predictions by Kyushu
Economic Research Center

36Kyushu Economic Research Center

Characteristics of 2017 figures••

2016– The pace of recoveryaccelerate.
– But, wage growth rate in
Kyushu will be low fornationwide .
– Improvement of tradebalance keep on byincreasing foreign tourists .
2017– Steady recovery after 2016
Kumamoto Earthquake.
– Population decline will bebottleneck for economic
growth.
– Increase of export due torecovering world economy.

GRP

FY2016FY2017

Kyushu

＋1.3%

＋1.9%

Japan

＋1.3%

＋1.5%

Trends of growth rate of Kyushu’s economy (real); Contribution
7%
6%
5%

⺠間消費

住宅投資

設備投資

政府消費

公共投資

純移輸出

5.5%
1.8%

4%
3%

0.8%

2%

1.9%

0.4%

1.8%

1.5%

0.9% 1.3%

1.9%

1%0%
-1%
-2%

-1.0%

-3%
-4%

-2.7%

-1.3%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
実績

実績

実績

実績

実績

実績

実績

実績

実績

推計

推計

予測

予測Note) Real: Fixed-base method (Base for 2005)
Source: “Prefectural Accounts” published by the Cabinet Office, and estimates and predictions by Kyushu
Economic Research Center

37

Kyushu Economic Research CenterEconomy Watchers Survey (Street Corner Economy)z This survey of economic trends was conducted at the initiative of the Cabinet Office. Surveysof Kyushu region were conducted by Kyushu Economic Research Center (Number ofwatchers: 210 in Kyushu; 2,050 nationwide)z Current DI: Current economy compared to that three months ago. Leading DI: Future
economic conditions that may change within three months compared to current conditions. If
DI exceeds 50, it indicates the economy is improving.
z In 2/2017, Current DI was 48.2. It was less than 50 for two consecutive months.On the otherhand,Leading DI is more than 50 for two consecutive months.
70

Economy Watchers Survey (Kyushu)
60

Leading DI

53.7

50

48.2
40

Current DI
30202012

13

14

15

16

17

Source: “Economy Watchers Survey” published by the Cabinet Office

38

Kyushu Economic Research CenterThank you for your attention.

(Hakata Doll)

39

Kyushu Economic Research Center