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% (2019)• Population:

14.26 million･･･11.3% (2019)– About 30% of Korea’s population, about 60% of Taiwan’s, about 110% of those of Hong Kong andSingapore combined, and about 80% of that of the Netherlands• Nominal GDP:

50.2 trillion yen ･･･ 9.1%(FY2016)– About 35% of GDP of Korea, and about 120% of that of Austria• Retail sales:15.4 trillion yen ･･･10.6% (2015)• Electricity sales:

77.7 billion kWh･･･10.8% (FY2019)• Value of construction starts:

3.0 trillion yen ･･･ 11.1% (FY2019)• New housing starts:

104,694 housing units･･･11.6% (2019)• Value of contracted public works: 1.9 trillion yen ･･･12.1% (FY2019)*8 prefectures in Kyushu (including Okinawa)

6

Kyushu Economic Research Center

Kyushu’s position in the global economy
GDP of major countries (2016)

Note: Kyushu's 8 Pref.=F.Y.2016
Sorce:"International Statistics" published by Ministry of Internal Affairs andCommunications,"Prefectual Accounts" published by the Cabinet Office

7GDP per capita of major countries (2016)

Note: Kyushu's 8 Pref.=F.Y.2016
Sorce:"International Statistics" published by Ministry of Internal Affairs andCommunications,"Prefectual Accounts" published by the Cabinet OfficeKyushu 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
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

01950

1955

1960

1965

1970

1975

19801985

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

9Kyushu Economic Research Center九州の市区町村別人口将来推計（2010－2040年）

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

Source: 2021 Outline of Kyushu’s Economy (page 18)

10Source: 2021 Outline of Kyushu’s Economy (page 19)

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
2nd3

4th

5th

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 chemicalproductsPig iron/crude steel

Ceramic, stone, andclay products

Automobiles

Agricultural, forestry
and fishery

92,214

188,628

199,086

216,462

270,970

Chemical fiber rawmaterials

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Industries representing over 10% in terms of size inJapan– Industry groups earning foreign currencies• Agricultural production
1.9 trillion yen･･･ 20.6%• Production of forest raw materials 5.35 million m3･･･ 24.4%• Fish catch including fish farming 857,000 tons･･･ 19.6%• Crude steel production
14.97 million tons･･･ 15.1%• Steel ship production
5.00 million gross tons ･･･ 31.1%• Integrated circuit production
736.3 billion yen･･･ 43.6%• Vehicle production
1.45 million vehicles ･･･ 15.0%(2018)(2019)(2018)(2019)*(2019)#(2019)*(2019)*

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(Nagoyaarea)

Kinki(Osakaarea)

Chugoku

Shikoku

KyushuOkinawaAll 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

8.28.4

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.

14Kyushu Economic Research Center

Kyushu’s Gross Domestic Product (GDP) isabout 10% of national 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
11.0

10.5

10.0

9.5

9.0

8.5

8.0

7.5

7.0
2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Source: ”Annual Report on Prefectural Accounts” published by Cabinet Office

15Kyushu 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

Japan

KyushuKyushu ＞JapanJapan＞Kyushu
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

17Kyushu 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 FY2019, 1.41 million vehicles were produced.
Production capacity(10 thousand)established

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

会社名操業開始 生産能力
（年）
（万台）

所在地

NISSANMOTOR
日産自動車九州
KYUSHU

1976197553Fukuoka
福岡県
Prefecture

NISSANSHATAI
日産車体九州KYUSHU

2009
2009
2010

17
1212Fukuoka
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: 2021 Outline of Kyushu Economy (page 35)

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< 7 prefectures in Kyushu>

Source: 2021 Outline of Kyushu Economy (page 35)

19

Trends of semiconductor manufacturing
equipment volumes< 7 prefectures in Kyushu>

Source: 2021 Outline of Kyushu Economy (page 35)

Kyushu Economic Research Center

Office locations– Automotive companies

Source: 2021 Outline of Kyushu Economy

Office locations–Companies handling electronics
products/electronic devices

Kyushu Economic Research CenterFood Island Kyushu• Agricultural production amounted to 1.9 trillion yen, 20.6% 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 (2018)

Source: 2021 Outline of Kyushu Economy (page 28)

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 had been increasing very much till the COVID-19 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 2020）

Geothermal power plant for businessSolarHokkaido
Tohoku
Kanto
KyushuThe number of thepower stations
29
326

The authorization
output（kW)25,072
258,700
3,340
224,179

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

Other renewable energy
WindHydraulicGeothermalBiomass

Hokkaido
Tohoku
Kanto
Chubu
Kinki
Chugoku

Shikoku
KyushuOkinawa(MW) 0

1,000

2,000

3,000

4,000

Source : Agency for Natural Resources and Energy

23

5,000

6,000

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）（Kyushu Railway Company）（Hisamitsu Pharmaceutical ）（Oita Canon）（Nishi-Nippon Railroad ）（Kyudenko Corporation）（Trial Company）（Tokyo Electron Kyushu）（Saibu Gas）
（ASO GROUP）

24

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: 1.6 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 StationDowntown

Kyushu Sinkansen
City hotel 38,000 rooms

28

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

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

London16

Vienna2

New York

17

Dubai

3

Tokyo

18

Toronto

4

Paris

19

Copenhagen

5Singapore20

Zurich6

Amsterdam

21

7

BerlinBarcelona…

8Seoul32

Helsinki

9Hong Kong

33

Osaka

10

Shanghai

34

11

SydneyIstanbul…

12Los Angeles

42

Sao Paulo

13

Madrid43

Fukuoka14

Melbourne

44

15

Beijing

Mexico City…

Source: “Global Power City Index 2020” published by the Institute for Urban Strategies (Mori Memorial Foundation) in December 2020

29

Kyushu Economic Research CenterGlobal City Competitiveness (USA)

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

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)31

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

6,528

6,000
5,000
3,742

4,000

Nagoya6.2

Sendai6.1Okayama

5.4

Kobe

5.2

Kumamoto

4.6

Niigata

4.3024

Nagoya

1,000

Tokyo

7.0

Osaka

3,362

2,000

10.8

Fukuoka

3,6010

Kyoto
7.3

3,611

3,000

Students to population ratio
TokyoOffice rent (March 2021)

3,000

Yokohama

FukuokaResidential rent (monthly housing rent)(March 2021)
2,662

2,500
1,894

2,000

1,761
1,415

1,500

1,337

1,000

6810

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

12(％)

5000Tokyo

Yokohama

OsakaNagoya

Fukuoka

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 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/

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 2021
• In 2021, the rate of Kyushu is forecasted that it will increase to 3.7%, 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
Kyushu GDP（％）

Japan GDP

6.0
3.7

4.0
2.1
2.0
0.0

3.4

1.1
0.9

1.8

0.6
-0.3

0.3
-1.0

-2.0
-4.0

-5.4
-6.0

-6.0
201635

2017

2018

2019

2020

2021
Kyushu Economic Research Center

Characteristics of Kyushu’s Economy
•••

GRP

FY2020

FY2021

Kyushu

-6.0%

3.7%

Japan-5.4%

3.4%

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

36

Kyushu Economic Research Center

Kyushu’s economy is affected by the coronavirus
pandemic••

Kyushu CI had gradually risen until a few years ago, but Kyushu’s economy has slowed down recently .
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
2017

2018

2019

2020

2021

Source: Prepared by Kyushu Economic Research Center.

••
37

CI: Composite Index covers all economic trends, and captures the magnitude of economic fluctuations andtempo by combining 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. Surveysof 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 3/2021, Current DI was 52.0, because the coronavirus situation settled down temporarily.
Economy Watchers Survey (Kyushu)
Leading DI

Current DI

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