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

ShanghaiTaipei

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

5

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% (2016)• Population:

14.06 million･･･11.3% (2016)– About 30% of Korea’s population, about 60% of Taiwan’s, about 120% of those of Hong Kong andSingapore combined, and about 90% of that of the Netherlands• Nominal GRP:

47.9 trillion yen ･･･ 9.3%

(FY2014)– About 50% of GDP of Korea, and about 120% of that of Belgium/Taiwan• Retail sales:13.1 trillion yen ･･･10.7% (2013)• Electricity sales:

86 billion kWh ･･･11.0% (FY2016)• Value of construction starts:

2.8 trillion yen ･･･ 10.3% (FY2016)• No. of new housing starts:

110,522･･･11.4% (2016)• Value of contracted public works: 1.9 trillion yen ･･･12.0% (FY2016)*8 prefectures in Kyushu (including Okinawa)

6

Kyushu Economic Research Center

Kyushu’s position in the global economy
GDP of major countries (2014)7

GDP per capita of major countries (2014)

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
128.06million

120

Youth population
16.84 million（13.1%）

Total population
104.67million

Total population
92.84million

100
Youth population
Youth population
25.17million（24.0%）

80

Working-age
population
81.74million（63.8%）

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
29.48million（23.0%）

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

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 →12.33 million– A decrease of 2.27 million (15.5%)
Population change and forecast

Source: 2018 Outline of Kyushu’s Economy (page 20)

10(10,000 people)

Source: 2018 Outline of Kyushu’s Economy (page 21)

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

4th

5

th

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

136,220rd

1980(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 chemical
products

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.

12

Kyushu Economic Research CenterIndustries representing over 10% in terms of size in Japan–
Industry groups earning foreign currencies• Agricultural production
1.8 trillion yen･･･ 20.8%• Production of forest raw materials 4.99 million m3･･･ 24.1%• Fish catch including fish farming 910,000 tons･･･ 19.7%• Crude steel production
15.91 million tons･･･ 15.2%• Steel ship production
4.08 million gross tons ･･･ 31.4%• Integrated circuit production
0.7 trillion yen･･･ 29.7%• Vehicle production
1.37 million vehicles ･･･ 14.6%(2015)(2016)(2015)(2016)*(2016)#(2016)*(2015)*

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

13

Kyushu Economic Research13
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.

14

Kyushu Economic Research Center

Rising Gross Regional Product (GRP) as a percentage of national GDP Ratio of Kyushu‘s GRPamong national GDPis stable in around 10%.
Trends of GRP of Kyushu and Yamaguchi asa percentage of national GDP

15

Kyushu Economic Research Center

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

130.0

1979.1～2018.2 average＝100

120.0

110.0

Japan

100.0

90.0

80.0

Kyushu ＞Japan

Kyushu70.0

60.0Japan＞Kyushu

50.0
1979 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

17 18

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

16

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

17

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 1.59 million vehicles.
• In 2016, 1.37 million vehicles were produced.
Production capacity(10 thousand)established

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

会社名操業開始 生産能力
（年）
（万台）

所在地

NISSAN
MOTOR
日産自動車九州
KYUSHU

1975

53

Fukuoka
福岡県
Prefecture

NISSANSHATAI
日産車体九州KYUSHU

2009
2010

17
12

Fukuoka
福岡県
Prefecture

TOYOTA
MOTOR
トヨタ自動車九州
KYUSHU

1992

43

Fukuoka
福岡県
Prefecture

DAIHATSU
MOTOR
ダイハツ九州KYUSHU

2004

46

Oita
大分県
Prefecture

生産車種一部

Source: 2018Outline of Kyushu Economy (page 36)

18

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 volumes< 8 prefectures in Kyushu>

Source: 2018 Outline of Kyushu Economy (page 36)

19

Kyushu Economic Research Center

Office locations–Leading automotive companies

Source: 2018Outline of Kyushu Economy

Office locations–Leading companies handling electronics
products/electronic devices

Kyushu Economic Research CenterFood Island Kyushu• Agricultural production amounted to 1.8 trillion yen, 20% 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 bloc andby food material (2015)

Source: 2018 Outline of Kyushu Economy (page 30)

21

Kyushu Economic Research Center

Onsen Island Kyushu
•

•

22

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 2.7 times in 10 years (2006: 869,000 -> 2016:
2,310,000)

Kyushu Economic Research CenterSolar & Geothermal Island Kyushu
The authorized facilities output of the renewable energy（As of the end of December, 2017）

Geothermal power plant for business

Solar

Hokkaido

Hokkaido
Tohoku
Kanto
KyushuTohokuKanto
Chubu

The number of thepower stations
1
5
1
5

The authorization
output（kW)25,000188,800
3,300
212,000

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

Shikoku
KyushuOkinawa
(MW)

0

5,000

10,00015,00020,00025,000

Geothermal

Biomass

Other renewable energy
Wind

HydraulicHokkaido
Tohoku
Kanto
Chubu
Kinki
Chugoku
Shikoku
KyushuOkinawa

(MW)

0

1,000

2,000

3,000

4,000

5,000

Source : Agency for Natural Resources and Energy

23

6,000

7,000

Source:NEDO(2010)

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

（ Daihatsu Motor Kyushu ）（Shin-Idemitsu）（Nissan Motor Kyushu ）（ASTEM, Inc）

（YASKAWA ELECTRIC CORPORATION）（Hisamitsu Pharmaceutical ）（Kyushu Railway Company）（Oita Canon）（KYUDENKO CORPORATION ）（Nishi-Nippon Railroad ）（BEST DENKI ）（Saibu-gas）（ASO GROUP）

24（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） -20171

London21

Brussels

2

New York

22

Chicago

3

Tokyo

23

Dubai

4

Paris

24

Barcelona

5

Singapore

25

Boston

6

Seoul

26

Osaka

7

Amsterdam

27

Madrid8

Berlin28

Vancouver

9

Hong Kong

29

Washington D.C.

10

Sydney30

Istanbul

11

Los Angeles

31

Kuala Lumpur

12Frankfurt

32

Milan

13

Beijing33

Bangkok

14

Vienna34

Geneva15

Shanghai

35

Moscow

16

Stockholm

36

Taipei17

San Francisco

37

Fukuoka18

Zurich38

Mexico City

19

Toronto39

Sao Paulo

20

Copenhagen

40

Buenos Aires

Source: “Global Power City Index 2017” published by the Institute for Urban Strategies (Mori Memorial Foundation) in January 2018

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) -2017
1. Tokyo
2. Vienna
3. Berlin/Munich
5. Melbourne
6. Copenhagen
7. Sydney
8. Zürich
9. Hamburg
10. Madrid

11. Stockholm
12. Kyoto
13. Helsinki
14. Fukuoka
15. Hong Kong
16. Lisbon
17. Barcelona
18. Vancouver
19. Dusseldorf
20. Amsterdam

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

Source: “Most Livable Cities Index (Monocle‘s Quality of Life Survey 2017),” Monocle（2017)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 49 % ofthat in Tokyo.
• Residential rent is about
47% of that in Tokyo.

Office rent (monthly) (March 2018)
7,000
5,969

6,000
5,000
4,000

3,352

7.13

Fukuoka

7.10

Sendai

6.18

Nagoya6.14

Okayama

5.31

Kobe

5.06

Kumamoto

4.52

Niigata

4.36
0

2

4

2,914

2,000
1,000
0
（¥/㎡）

Tokyo

10.74

Tokyo

3,339

3,000

Students to population ratio
Kyoto

3,425

3,000

Yokohama

Osaka

NagoyaFukuokaResidential rent (monthly housing rent)(Average for 2017)
2,595

2,500
2,116
2,000

1,785
1,491

1,500

1,271

1,000
500
6

8

10

Source : “Fukuoka Facts” by Fukuoka City
http://facts.city.fukuoka.lg.jp/data/students/

12
(％)

0
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

32

Kyushu Economic Research CenterNational Strategic Special Zones
Fukuoka City have 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 .

the Startup Café in FUKUOKA
growth next will continue toprovide professional consultation,
as well as free advice on matterssuch as recruitment and start-up
visas.
Source : FUKUOKA NOW
http://www.fukuoka-now.com/en/startup-cafe-moves-fukuoka-growth-next/

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 2018
 Since 2015, Kyushu’s GRP is rising gradually.
 In 2018, the rate of Kyushu is forecasted to increase to 1.3%, a level will
exceed national GDP growth rate 4 years in a row.
Trends of real economic growth rates and forecasts
Kyushu GRP

Japan GDP

4.0

3.5

3.5
3.0
2.5

1.8

1.8

2.0

1.7

1.5

1.3

1.0
0.5

1.4

-0.3

1.2

1.2

0.0
-0.5
-1.0
-1.5

-1.5

-2.0

(％)

35

2014

2015

2016

2017

2018

Kyushu Economic Research Center

Characteristics of 2018 figures

GRP

FY2017FY2018

Kyushu

＋3.5%

＋1.3%

Japan

＋1.8%

＋1.2%

Trends of growth rate of Kyushu’s economy (real); Contribution• 2017
8%– Steady recovery after 2016
民間消費
住宅投資
設備投資
政府消費
Kumamoto Earthquake.
5.4%
6%
公共投資
純移輸出
– Population decline will be
1.6%
3.5%
bottleneck for economic
4%
0.5%
1.9%
1.5%
1.8% 1.7%
growth.
1.5%
1.3%
2%
– Increase of export due torecovering world economy0%• 2018– The pace of growth-2%
slowdown.
-1.1%
-2.8%
-4%
– A shortage of workers is-1.5%
damaging Kyushu’s-6%
economy .
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
– But private consumption will
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
remain steady as incomeNote) Real: Fixed-base method (Base for 2005)
increases.

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

36

Kyushu Economic Research Center

Kyushu’s economy recovered dues to Abenomics••

Industrial Production Index (composite)
indicates have gradually risen throughout
2017.
– Due to the strong performance ofelectronic component and electronic
device.

•Public investment, private sector real estate
investment was steady and Changed, too.

•

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).”

•

37

Economy has recovered continuously since
the end of 2012 due to the effects of
Abenomics.
– First arrow (Bank of Japan’squantitative/qualitative easing:Significant impact– Second arrow (Rapid increase in public
investment)

Kyushu region’s composite economic indexes (Kyushu CI)

160

2005年＝100

140

120

100

80

60

40
2011

2012

2013

2014

2015

2016

2017

2018

Note) CI: Composite index covers all economic trends, and captures the magnitude of
economic fluctuations and tempo by combining rates of changes in indexes
adopted.
Source: Prepared by Kyushu Economic Research Center.

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 ofwatchers: 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 2/2018, current DI was 47.3. It was less than 50 for two consecutive months, Leading DI is
below 50.0 too.
Economy Watchers Survey (Kyushu)

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