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

4Kyushu 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

ShanghaiTaipei5Kyushu 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:

44,512 km2･･･11.8% (2022)• Population:

14.04 million･･･11.3% (2023)– About 27% of Korea’s population, about 60% of Taiwan’s, about 104% of those of Hong Kong andSingapore combined, and about 80% of that of the Netherlands• Nominal GDP:

50.4 trillion yen ･･･ 9.4%(FY2020)– About 29% of GDP of Korea, about 70% of Taiwan’s, about 109% of Austria, and about 136% ofthat of Singapore• Retail sales:

14.8 trillion yen ･･･10.7% (2020)• Electricity sales:

70.9 billion kWh･･･10.5% (FY2022)• Value of construction starts:

3.2 trillion yen ･･･12.0% (2022)• New housing starts:

97,993 housing units･･･11.4% (2022)• Value of contracted public works: 3.0 trillion yen ･･･14.8% (2022)*8 prefectures in Kyushu (including Okinawa)

6

Kyushu Economic Research Center

Kyushu’s position in the global economy
GDP of major countries (2020)

Note: Kyushu's 8 Pref.=F.Y.2020
Sorce:"International Statistics" published by Ministry of Internal Affairs andCommunications,"Prefectual Accounts" published by the Cabinet Office

7GDP per capita of major countries (2020)

Note: Kyushu's 8 Pref.=F.Y.2020
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

8Kyushu Economic Research Center

Japan is transforming into a societywith a shrinking population
Japan’s long-term population projection (by population composition)
Total population
126.15million
Elderly population
36.03million（28.6%）
Elderly population
7.33million（7.1%）

Total population
87.00million
Elderly population

Elderly population
33.67million（38.7%）
Working-age
population
71.56million（69.0%）

Youth population
24.82million（23.9%）

Working-age
population
75.09million（59.5%）

Youth population
15.03million（11.9%）

Working-age
population

Working-age
population
45.35million（52.1%）

Youth population
7.98million（9.2%）
Youth population

Note：Youth population 0～14、 Working-age population 15～64、Elderly population 65～
Source: “Population Projection for Japan: 2021-2070 (April 2023)” by National Institute of Population and Social Security Research

9Kyushu Economic Research CenterPopulation Projection by Municipalities(From 2020 to 2050)

Kyushu’s population is also
increasingly shrinking• Kyushu/Okinawa: 2020 → 2050
– 14.24 million →10.87 million– A decrease of 3.37 million (23.6%)
Population change and forecast(10,000 people)

Source: 2024 Outline of Kyushu’s Economy (page 18)
Source: 2024 Outline of Kyushu’s Economy (page 19)

10Kyushu 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
1.9 trillion yen･･･ 21.2%• Production of forest raw materials 5.39 million m3･･･ 24.4%• Fish catch including fish farming 330.3 billion yen･･･ 26.3%• Crude steel production
13.74 million tons･･･ 15.4%• Steel ship production
2.47 million gross tons ･･･ 26.5%• Integrated circuit production
930.1 billion yen･･･ 44.6%• Vehicle production
1.15 million vehicles ･･･ 14.6%(2021)(2022)*(2021)(2022)*(2022)#(2022)*(2022)*

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

12

Kyushu Economic Research12Center

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

TohokuKanto(Tokyoarea )Chubu(Nagoyaarea)

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

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 of rates (national and Kyushu))
120

Japan

110

10090

Kyushu80

Kyushu ＞JapanJapan＞Kyushu

70

2009.1～2024.2 average ＝10060
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 1 4 7 10 1
2010201120122013201420152016201720182019

2020

2021

2022

2023 202
4

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

16Kyushu 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: 2024 Outline of Kyushu Economy (page 37)

17Exports of Semiconductor related product< 8 prefectures in Kyushu and Yamaguchi >Source: 2024 Outline of Kyushu Economy (page 37)

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 2022, 1.15 million vehicles were produced.
Trends of number of vehicles produced<7 prefectures in Kyushu>
Production
Company

Location

Estblishedcapacity(10 thousand)

NISSAN MOTOR

Fukuoka

KYUSHU

Prefecture

TOYOTA MOTORFukuoka

KYUSHU

Prefecture

DAIHATSU MOTOR

Oita

KYUSHU

Prefecture

NISSAN SHATAI

Fukuoka

KYUSHU

Prefecture

MAZDA MORTOR

Yamaguchi
Prefecture

1976

53

1992

43

2004

46

2009

121982

41.6

Source: 2024 Outline of Kyushu Economy (page 37)

18

Kyushu Economic Research Center

Map of Major Automobile-related Factories

Source: 2023 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 1.9 trillion yen, 21.2% 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 Outputby Region & Category (2020)

Source: 2024 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 → 2023:3,115,000)

Kyushu Economic Research CenterSolar & Geothermal Island Kyushu
The authorized facilities output of the renewable energy（As of the end of December 2023）
Hokkaido
TohokuKantoChubu

SolarKinki

Geothermal power plant for business
The number of theThe authorization
power stations
output（kW)Hokkaido
125,000
Tohoku9240,398
Tokai
11,998
Kyushu14235,883
Source:Geothermal Engineering Co., Ltd. (2023.04)

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

Shikoku
KyushuOkinawa(MW) 05,000

10,000
Wind15,000

Hydraulic

20,000

Geothermal

25,000

Biomass

Hokkaido
TohokuKantoChubu
Kinki

Other renewable energy

Chugoku
Shikoku
KyushuOkinawa(MW)01,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

Source : Agency for Natural Resources and Energy

22

Source:NEDO(2010)

Kyushu Economic Research CenterLeading companies headquartered in Kyushu
ロゴ（Sony Semiconductor Manufacturing Corporation）（KYUSHU ELECTRIC POWER）（TOYOTA MOTOR KYUSHU）（TOTO）（ DAIHATSU MOTOR KYUSHU）（Nissan Motor Kyushu）（ASTEM）（SHIN-IDEMITSU）（ Japan Advanced Semiconductor Manufacturing）
久光製薬ロゴ（Kyushu Railway Company）（YASKAWA Electric Corporation）（Hisamitsu Pharmaceutical ）西日本鉄道株式会社

CANON
大分キヤノン株式会社

九電工（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
YASKAWA

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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

25

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

26

Kyushu Economic Research CenterGlobal Power City Index（JAPAN）
1London16

Stockholm

2

New York

17

Beijing

3

Tokyo

18

Hong Kong

4

Paris

19

Zurich5Singapore

20Frankfurt

6

Amsterdam

21

7

Seoul

Los Angeles…

8

Dubai

36

Washington, DC

9Melbourne

37

Osaka

10

Berlin38

11

Copenhagen

Bangkok…

12

Sydney41

Kuala Lumpur

13

Vienna42

Fukuoka14

Madrid43

15

Shanghai

Mexico City…

Source: “Global Power City Index 2022” published by the Institute for Urban Strategies (Mori Memorial Foundation) in December 2022

27Kyushu Economic Research Center

WORLD’S BEST CITIES
1 LONDON

21 LAS VEGAS

41 MUNICH

61 TAIPEI

81 FUKUOKA

2 PARIS

22 MILAN

42 HOUSTON

62 VALENCIA

82 SEVILLE

3 NEW YORK

23 BUDAPEST

43 AUSTIN

63 MINNEAPOLIS

83 RIYADH

4 TOKYO

24 TORONTO

44 BUENOS AIRES

64 PHILADELPHIA

84 JERUSALEM

5 DUBAI

25 SYDNEY

45 NAPLES

65 CALGARY

85 NANJING

6 BARCELONA

26 SEOUL

46 COPENHAGEN

66 PORTLAND

86 MINSK

7 ROME

27 DOHA

47 DALLAS67 NASHVILLE

87 SALT LAKE CITY

8 MADRID

28 ABU DHABI

48 HELSINKI

68 AUCKLAND

88 PHOENIX

9 SINGAPORE

29 OSAKA

49 FRANKFURT

69 VANCOUVER

89 JAKARTA

10 AMSTERDAM

30 BANGKOK

50 ATLANTA

70 SANTIAGO

90 GOTHENBURG

11 PRAGUE

31 VIENNA

51 STOCKHOLM

71 MEXICO CITY

91 PERTH

12 LOS ANGELES

32 SAN DIEGO

52 MIAMI

72 MUMBAI

92 GLASGOW

13 CHICAGO

33 SAO PAULO

53 ATHENS

73 SHANGHAI

93 NAGOYA

14 SAN FRANCISCO

34 MELBOURNE

54 RIO DE JANEIRO

74 SAN JOSE

94 BALTIMORE

15 BERLIN

35 ZURICH

55 HAMBURG75 LYON

95 STUTTGART

16 HONG KONG

36 BOSTON

56 DENVER

76 BILBAO

96 OTTAWA

17 WASHINGTON

37 LISBON

57 MONTREAL

77 LIVERPOOL

97 HANOI

18 BEIJING

38 WARSAW

58 BRUSSELS

78 NEW ORLEANS

98 SENDAI

19 DUBLIN

39 SEATTLE

59 TEL AVIV

79 BRISBANE

99 COLOGNE

20 ISTANBUL

40 ORLANDO

60 OSLO80 MANCHESTER

100 MARSEILLE

Source:”THE WORLD‘S 100 BEST CITIES“ by Resonance Consultancy Ltd.（2023)

28

Kyushu Economic Research CenterMost Livable Cities
1Copenhagen

11 Munich

21 Milan

2Zurich

12 Seoul

22 Fukuoka

3Lisbon13 Berlin23 Oslo

4Helsinki

14 Amsterdam

24 Singapore

5Stockholm

15 Madrid

25 Brisbane

6Tokyo16 Auckland

7Vienna

17 Paris8

Sydney18 Barcelona

9Vancouver

19 Melbourne

10 Taipei

20 Kyoto

Source: “Most Livable Cities Index (Monocle‘s Quality of Life Survey 2022),” Monocle（2022)

29

Kyushu Economic Research CenterFukuoka City has plentiful human resources andaffordable rents• Students to population ratio
ranks third in Japan.
• Office rent is about 60% ofthat in Tokyo.
• Residential rent is about
50% of that in Tokyo.

6,008
6,000
5,000
4,000

3,762Yokohama

Osaka

Nagoya3,530

1,00003,500
11.1

3,000Tokyo

FukuokaResidential rent (monthly housing rent)(March 2024)
2,943

7.3

Fukuoka

2,500

7.0

1,992

Nagoya6.5

2,000

Sendai

6.4

1,500

Okayama

5.5

Kobe
4.5

Nigata

4.4
02

4

1,866
1,589

1,486

NagoyaFukuoka

1,000

5.1

Kumamoto

5000(¥/m2)
6810

Source : Comparative Statistical Chronology of Major Cities(2022)

30

3,655

2,000

Students to population ratio
Tokyo

3,868

3,000(¥/m2)

Kyoto

Office rent (March 2024)

7,00012(％)

TokyoYokohama

OsakaSource :“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 inMay 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/

31

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

32

Kyushu Economic Research Center

Kyushu’s economy in 2024•

In 2024, the rate of Kyushu is forecasted that it will decrease to 1.4%, because consumer
price index rose sharply by 3.1% year-on-year, slowing the pace of recovery inprivate.
Trends of real economic growth rates

4
2.8

3

3.2

2.1

2
1.8

1.9

2.4

1.2

1.5

1

1.4

1.6
1.0

0-0.8

0.2

-1

-0.9

-2

kyusyu GDP-3

Japan GDP-3.9-4-4.9-5

2017

2018

2019

2020

2021

2022

2023

2024

Source: Monthly Bulletin of Kyushu Economic Research(2024.02) by Kyushu Economic Research Center

33

Kyushu Economic Research Center

Characteristics of Kyushu’s Economy••In 2024, private consumption, private capital investment, and production activity will all increase.
Investments related to industries such as semiconductor, Non-ferrous metal manufacturingindustry, and transportation business will increase.

Trends of growth rate of Kyushu’s economy (real); ContributionGRP

FY2023

FY2024

Kyushu

1.9%

1.4%

Japan

1.6%

1.0%

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

34

Kyushu Economic Research CenterBeyond the Corona Disaster, Kyushu Economy
Recovers in Earnest•

The Kyushu CI bottomed out in the first quarter of 2020 and continues to recover gradually. In contrast,leading indicators continue to move back and forth.

Kyushu region’s composite economic indexes (Kyushu CI)
2005年＝100160

140

120

100

8060

40

2017

2018

2019

2020

2021

2022

2023

2024

Source: Prepared by Kyushu Economic Research Center.

••

35

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 compositeeconomic 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)
In 4/2024, Current DI was 51.5•

Economy Watchers Survey (Kyushu)
70.0
Current DI

60.0

51.5

50.0
50.4
40.0

Leading DI

Current DI

30.0

Leading DI

20.0
10.0
0.0
1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3
2016

2017

2018

2019

2020

2021

2022

2023

2024

Source: “Economy Watchers Survey” published by the Cabinet Office※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.
36

Kyushu Economic Research CenterThank you for your attention.

(Hakata Doll)

37

Kyushu Economic Research Center