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

KYUSHUOsaka NahaFukuoka

SapporoBusanTaipei
Vladivostok● SeoulFuzhouHong Kong

Shanghai
QingdaoNanjing
Guangzhou

DalianHarbinShenyang

Wuhan
TianjinBeijing
Source: Prepared by Kyushu Economic Research Center

4

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

ShanghaiTaipei5

Kyushu Economic Research Center

Kyushu represents 10% of Japan= 10% of Japan’s economy•

In terms of population and GRP, Kyushu follows three metropolitan areas (i.e. Kanto (Tokyo area),
Kinki (Osaka area), and Tokai (Nagoya area)), with the highest statistics for a local area.

• Land area:

44,513 km2･･･11.8% (2021)• Population:

14.26 million･･･11.3% (2020)– About 30% of Korea’s population, about 60% of Taiwan’s, about 105% of those of Hong Kong andSingapore combined, and about 80% of that of the Netherlands• Nominal GDP:

52.1 trillion yen ･･･ 9.2%

(FY2018)– About 25% of GDP of Korea, about 100% of Austria, and about 120% of that of Singapore• Retail sales:15.4 trillion yen ･･･10.6% (2015)• Electricity sales:

87.4 billion kWh･･･10.6% (FY2020)• Value of construction starts:

2.6 trillion yen ･･･10.8% (FY2020)• New housing starts:

89,862 housing units･･･11.0% (2020)• Value of contracted public works: 2.3 trillion yen ･･･13.6% (FY2020)*8 prefectures in Kyushu (including Okinawa)

6

Kyushu Economic Research Center

Kyushu’s position in the global economy
GDP of major countries (2018)

GDP per capita of major countries (2018)
587

Polandthe United Kingdom

42.6
41.5

Sweden555

FranceBelgium

544

Japan

520

Argentina

505

Thailand

39.8

Italy

34.5

Korea

33.7
32.2

Kyushu's 8Pref.

468

Kyushu's 8Pref.

Iran

462

Spain

Austria

455

Slovenia

26.1

25.8

30.5

Norway434

TaiwanUnited Arab Emirates

422

Bahrain

24.0

Nigeria

422

Portugal

23.6

0（US $ billion ）

100

200

300

400

500

Note: Kyushu's 8 Pref.=F.Y.2018
Sorce:"International Statistics" published by Ministry of Internal Affairs andCommunications,"Prefectual Accounts" published by the Cabinet Office

7600（US $1,000）

0

10

20

30

40

50

Note: Kyushu's 8 Pref.=F.Y.2018
Sorce:"International Statistics" published by Ministry of Internal Affairs andCommunications,"Prefectual Accounts" published by the Cabinet Office

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

8

Kyushu 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
127.10million

120

Youth population
15.95million（12.5%）

Total population
104.67million

Total population
92.84million

100
Youth population
Youth population
25.17million（24.0%）

80

Working-age
population
77.28million（60.8%）

60

Youth population
9.51million（10.2%）

Working-age
population

Working-age
population
47.93million（51.6%）

Working-age
population
72.11million（68.9%）

40

Elderly population
33.87million（26.6%）

Elderly population
7.39million（7.1%）

20

Elderly population
35.40million（38.1%）

Elderly population

0
1950

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: 2015-2060 (April 2017)” by National Institute of Population and Social Security Research

9

Kyushu Economic Research CenterPopulation Projection by Municipalities(From 2015 to2045)

Kyushu’s population is also
increasingly shrinking• Kyushu/Okinawa: 2015 → 2045
– 14.45 million →12.00 million– A decrease of 2.45 million (17.0%)
Population change and forecast(10,000 people)

全国
Japan
九州8県
Kyushu's 8 Pref.
福岡県
Fukuoka Pref.
佐賀県
Saga Pref.
長崎県
Nagasaki Pref.
熊本県
Kumamoto Pref.
大分県
Oita Pref.
宮崎県
Miyazaki Pref.
鹿児島県
Kagoshima Pref.
沖縄県
Okinawa Pref.
山口県
Yamaguchi Pref.

1960

1980

2000

2010

2015

2020

2030

2040

2045

9,430.2

11,706.0

12,692.6

12,805.7

12,709.5

12,622.7

11,912.5

11,091.9

10,642.1

1,378.7

1,407.2

1,476.4

1,459.7

1,445.0

1,425.6

1,346.8

1,252.7

1,199.7

400.7

455.3

501.6

507.2

510.2

513.9

495.5

470.5

455.4

94.3

86.6

87.7

85.0

83.3

81.2

75.7

69.7

66.4

176.0

159.1

151.7

142.7

137.7

131.3

119.2

105.4

98.2

185.6

179.0

185.9

181.7

178.6

173.9

163.6

151.2

144.2

124.0

122.9

122.1

119.7

116.6

112.5

104.4

94.7

89.7

113.5

115.2

117.0

113.5

110.4

107.0

97.7

87.7

82.5

196.3

178.5

178.6

170.6

164.8

158.9

143.7

128.4

120.4

88.3

110.7

131.8

139.3

143.4

146.8

147.0

145.2

142.8

160.2

158.7

152.8

145.1

140.5

134.3

123.0

110.0

103.6

2020年までは総務省「国勢調査報告」、
2030年以降は国立社会保障・人口問題研究所「日本の地域別将来推計人口」

Source: 2022 Outline of Kyushu’s Economy (page 18)

Source: 2022 Outline of Kyushu’s Economy (page 19)

10

Kyushu Economic Research Center

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

1960

1970

1980

1990

2000

2010

2020

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Industries representing over 10% in terms of size inJapan– Industry groups earning foreign currencies• Agricultural production
1.8 trillion yen･･･ 20.7%• Production of forest raw materials 4.83 million m3･･･ 24.3%• Fish catch including fish farming 786,000 tons･･･ 19.0%• Crude steel production
13.26 million tons･･･ 15.9%• Steel ship production
4.20 million gross tons ･･･ 32.8%• Integrated circuit production
736.1 billion yen･･･ 43.1%• Vehicle production
1.22 million vehicles ･･･ 15.1%(2019)(2020)(2019)(2020)*(2020)#(2020)*(2020)*

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

12

Kyushu Economic Research12
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(Nagoya
area)

Kinki
(Osakaarea)

Chugoku

Shikoku

KyushuOkinawa

All Japan

北海道 東北 関東 中部 近畿 中国 四国 九州 沖縄 全国

1970

3.8

2.7

8.2

8.4

8.8

7.5

8.5

6.1

－

7.8

1975

3.9

4.1

11.3

11.1

11.0

12.3

10.9

9.1

1.2

10.6

1980

－

－

－

－

－

－

－

8.5

1.2

11.6

1985

2.1

8.8

14.8

15.2

13.2

12.0

12.4

8.5

3.1

13.3

1990

1.4

8.4

11.2

14.3

10.5

9.8

7.8

8.6

8.3

10.9

1995

2.5

8.1

12.6

14.9

10.8

11.8

12.2

12.1

13.8

12.1

2000

3.0

13.2

14.8

17.6

14.7

13.9

15.0

19.0

5.4

15.2

2005

3.1

16.3

17.1

20.9

17.4

17.9

17.6

26.5

3.5

18.4

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

13

Kyushu Economic Research Center

Kyushu’s Gross Domestic Product (GDP) is 10 ofnational GDP◼ Ratio of Kyushu‘s GDP among national GDP is stable in around 10%.
Trends of GDP of Kyushu and Yamaguchi asa percentage of national GDP(¥ million)

(%)

65

12
10

60

8
55
6
50
4
45

2

40

0
2006 07

08

09

10

11

12

13

14

15

16

17

18

Source: ”Annual Report on Prefectural Accounts” published by 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))1980.1～2020.2 average＝100
120.0

Kyushu

110.0

100.0

Japan
90.0

80.0

Kyushu ＞Japan

Japan＞Kyushu

70.0

60.0
1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10
2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Source: “Industrial Production Index” published by Ministry of Economy, Trade and Industry“Kyushu’s Industrial Production Index” by Kyushu Bureau of Economy, Trade and Industry

15

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

16

Kyushu 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 2020, 1.22 million vehicles were produced.
Production capacity(10 thousand)

Trends of number of vehicles produced<7 prefectures in Kyushu>
Company

established

Location

NISSAN
MOTOR

1976

53

2009

12

1992

43

2004

46

VehicleFukuoka
Prefecture

KYUSHUNISSANSHATAI

Fukuoka
Prefecture

KYUSHUTOYOTA
MOTOR

Fukuoka
Prefecture

KYUSHUDAIHATSU
MOTOR

Oita
Prefecture

KYUSHU

Source: 2022 Outline of Kyushu Economy (page 37)

17

Kyushu 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< 7 prefectures in Kyushu>

Source: 2022 Outline of Kyushu Economy (page 37)

18

Exports of Semiconductor related product< 8 prefectures in Kyushu and Yamaguchi >Source: 2022 Outline of Kyushu Economy (page 37)

Kyushu Economic Research Center

Map of Major Automobile-related companies

Source: 2022 Outline of Kyushu Economy

Map of Major Electronics-related Factories(Electronic products & Electronic Device)

Kyushu Economic Research CenterFood Island Kyushu• Agricultural production amounted to 1.8 trillion yen, 20.7% of national
production.
• 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 Region Category (2019)

Source: 2022 Outline of Kyushu Economy (page 30)

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 had been increasing very much till the coronavirus pandemic.
(2009: 598,000 -> 2019: 3,107,000)

Kyushu Economic Research CenterSolar & Geothermal Island Kyushu
The authorized facilities output of the renewable energy（As of the end of September 2021）

Solar

Geothermal power plant for businessHokkaido
TohokuKyushuThe number of thepower stations1
9
13

The authorization
output（kW)25,000275,998
233,715

main hot springs targeted for an application of the hotspring heat generation without digging

Other renewable energy

Source : Agency for Natural Resources and Energy

22

Source:NEDO(2010)

Kyushu Economic Research CenterLeading companies headquartered in Kyushu（Sony Semiconductor Manufacturing Corporation）（KYUSYU ELECTRIC POWER）（TOYOTA MOTOR KYUSHU）（TOTO）（ DAIHATSU MOTOR KYUSHU）（Nissan Motor Kyushu）（SHIN-IDEMITSU）（ASTEM）（YASKAWA Electric Corporation）（Hisamitsu Pharmaceutical ）（Kyushu Railway Company）（Oita Canon）（Nishi-Nippon Railroad ）（Kyudenko Corporation）（Trial Company）（Saibu Gas）

23

（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.)24

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)

25

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

26

Kyushu Economic Research Center

Kyushu’s largest city: Fukuoka City
◆ City population: 1.6 million; Population of the city and surrounding areas: 2.6 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 40,000 rooms

27

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

London16

Vienna2

New York

17

Dubai

3

Tokyo

18

Toronto

4

Paris

19

Copenhagen

5Singapore20

Zurich6

Amsterdam

21

7

BerlinBarcelona
…

8

Seoul

35

Bangkok

9

Hong Kong

36

Osaka

10

Shanghai

37

11

SydneyWashington, DC…

12

Los Angeles

41

Tel Aviv

13

Madrid42

Fukuoka14

Melbourne

43

15

Beijing

Sao Paulo…

Source: “Global Power City Index 2021” published by the Institute for Urban Strategies (Mori Memorial Foundation) in November 2021

28

Kyushu Economic Research CenterGlobal City Competitiveness (USA)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

New York
LondonSingapore
Hong KongTokyo
SydneyParis
Stockholm
ChicagoTorontoTaipei
ZurichAmsterdam
Washington
Copenhagen
Seoul
Los Angeles
San Francisco
BostonFrankfurt
Melbourne
DublinDubai
Doha
Brussels
Oslo
HoustonVancouver
ViennaGeneva

31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60

Kuala Lumpur
DallasAtlanta
BerlinSeattleMontreal
Sao Paulo
Shanghai
Abu Dhabi
Miami
Tel Aviv
AucklandBirmingham
IncheonWarsaw
Hamburg
MadridPhiladelphia
Beijing
Osaka
Busan
Mumbai
Budapest
PragueBarcelona
Delhi
LisbonMilan
Moscow
Monaco

61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90

Santiago
Bangkok
Kuwait City
MuscatPanama City
Johannesburg
Buenos Aires
Rome
ShenzhenIstanbul
Fukuoka
Mexico City
NagoyaJakarta
Lima
Rio de Janeiro
Cape Town
AthensManilaBucharest
Tianjin
Qingdao
DalianSuzhou (Jiangsu)
BogotaChengduKrakow
RiyadhGuangzhou
Kiev

91
92
93
94
95
96
97
98
99
100

Medellin
Saint Petersburg
HangzhouBangalore
DurbanHo Chi Minh City
Porto Alegre
Chongqing
Pune
Hyderabad

Source: “Hot Spots2025: Benchmarking the future Competitiveness of cities” published by Citi Bank（2013)

29

Kyushu Economic Research CenterMost Livable Cities (U.K)
1. Zurich
2. Tokyo
3. Munich
4. Copenhagen
5. Vienna
6. Helsinki
7. Hamburg
8. Madrid
9. Berlin
10. Lisbon

11. Melbourne
12. Stockholm
13. Sydney
14. Amsterdam
15. Vancouver
16. Hong Kong
17. Kyoto
18. Barcelona
19. Paris
20. Dusseldorf

21. Auckland
22. Fukuoka
23. Brisbane
24. Oslo
25. Singapore

Source: “Most Livable Cities Index (Monocle‘s Quality of Life Survey 2019),” Monocle（2019)30

Kyushu Economic Research CenterFukuoka City has plentiful human resources andaffordable rents
7,000• Students to population ratio
ranks third in Japan.
• Office rent is about 50% ofthat in Tokyo.
• Residential rent is about
50% of that in Tokyo.

6,172

6,000
5,000
4,000

3,604

3,658

Yokohama

Osaka

Nagoya

3,422

2,000
1,000
0

Students to population ratio

3,000

FukuokaResidential rent (monthly housing rent)(March 2022)
2,671

10.1

Tokyo

2,500

5.7

Fukuoka

4.9

Sendai

4.8

Kobe

4.6

Nagoya4.5

Okayama

4.4

Kumamoto

2

1,756

1,412

1,500

1,282

1,000
500

3.0
0

1,903

2,000

3.5

Niigata

0
4

6

8

10

Source : Comparative Statistical Chronology of Major Cities

31

3,761

3,000

(¥/m2) Tokyo

Kyoto

Office rent (March 2022)

12(％)(¥/m2)Tokyo

Yokohama

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
Fukuoka City has been designated National Strategic Special Zones . Fukuoka City aims
to be a Special Zone for Global Startups and Job Creation.
FUKUOKA growth next is thefacility for supporting start-ups.
It was established by public-private
partnerships in 2017 and reopened in
May 2019.

The Startup Café in FUKUOKA
growth next will continue toprovide professional consultation,
as well as free advice on matterssuch as financing and legal
affairs.
Source : FUKUOKA NOW
http://www.fukuoka-now.com/en/startup-cafe-moves-fukuoka-growth-next/

32

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

33

Kyushu Economic Research Center

Kyushu’s economy in 2022
• In 2022, the rate of Kyushu is forecasted that it will increase to 3.5%, because
Kyushu’s economy is expected to recover from the impact of the coronavirus(COVID-19) . However, it is depending on the spread of infection.
Trends of real economic growth rates※This is estimated under the assumption that the state of emergency wouldn’t be announced,
Kyushu Economic Research Center is going to release revised estimate in July .
34

Kyushu Economic Research Center

Characteristics of Kyushu’s Economy
•
•
•

GRP

FY2021

FY2022

Kyushu

2.6%

3.5%

Japan

2.7%

3.0%

Private consumption didn’t grow in 2020, industries such as eating and drinking or accommodation
damaged due to staying home.
Private-sector capital investment will be increasing, rising the investment related to industries
such as semiconductor, healthcare and environment.
Public Investment has been growing by infrastructure improvement for National Resilience.
Trends of growth rate of Kyushu’s economy (real); Contribution

othersactualGRP
estimate

Source: “Prefectural Accounts” published by the Cabinet Office, and estimates and predictions by Kyushu Economic Research Center

35

Kyushu Economic Research Center

Kyushu’s economy is affected by the COVID-19 pandemic••

Kyushu CI had gradually risen until a few years ago, but Kyushu’s economy has slowed down recently .
Of course, Kyushu CI tends to be decreasing by the impact of the coronavirus (COVID-19) .

Kyushu region’s composite economic indexes (Kyushu CI)
160

2005年＝100

140

120

100

80

60

40
2016

2017

2018

2019

2020

2021

2022

Source: Prepared by Kyushu Economic Research Center.

••
36

CI: Composite Index covers all economic trends, and captures the magnitude of economic fluctuations and tempo bycombining rates of changes in indexes adopted.
Kyushu Economic Research Center prepared coincident and leading indexes as “Kyushu region’s composite
economic indexes (Kyushu CI).”
Kyushu Economic Research CenterEconomy Watchers Survey (Street Corner Economy)•••

This survey of economic trends was conducted at the initiative of the Cabinet Office.
Surveys of Kyushu region were conducted by Kyushu Economic Research Center(Number of watchers: 210 in Kyushu; 2,050 nationwide)
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.
In 3/2022, Current DI was 52.9
Economy Watchers Survey (Kyushu)
Leading DI

Current DI

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

37

Kyushu Economic Research CenterThank you for your attention.

(Hakata Doll)

38

Kyushu Economic Research Center