Overview of Tokyo’s Economy Tokyo is the Hub of Japan’s ...

Tokyo is the Hub of Japan’s Economic ActivityOverview of Tokyo’s Economy

１27,094,745Population

2015377,972㎢

Land Area

201659,611,589Number of Employed Persons

2010

5,541,634Number of Establishments

2014

393,391　Number of Factories

2011

1,407,235Number of Establishments

(Wholesale, Retail)

2014

287.3 trillion yenValue of Manufactured Goods Shipments

2011

478.8 trillion yenAnnual Product Sales (Wholesale, Retail)

2014

70.4 trillion yenValue of Exports

2016( revised)

777Number of Students　2,873,624

Number of Universities

FY2016

66.0 trillion yenValue of Imports

2016(preliminary)

5,641

Number of ResearchInstitutes for National Sciences

2014

3,158Number of Foreign-Affi liated Companies

2016

532.2 trillion yenGross Domestic Product (Nominal)

FY2015

5,919Number of Enterprises Capitalized at 1 Billion Yen or More

2014

3,065 thousand yenPrefectural income per capita (all prefectures total)

FY2013

474.0 trillion yenLoans Outstanding of Banks (Domestically Licensed)

end of December2016

70.6％Ratio of Tertiary Industry Persons Engaged in Work

201299.8 trillion yenGross Prefectural Product

FY2013６6,236

Number of Establishments(Information and Communications)

2014

24.0 millionNumber of Foreign Visitors

2016(preliminary)

1,750,071Number of Enterprises

2014 99.7％

Ratio of Small andMedium Enterprises

2014

[Sources] ・ CAO “Annual Report on National Accounts”・ CAO “Annual Report on Prefectural Accounts”・ BOJ “Deposits and Loans Market”・ JNTO materials・ MIC / METI “Economic Census for Business Activity: Tabulation of individual industries (Manufacturing Industry)”

・ MOF “Trade Statistics of Japan”・ METI “Census of Commerce”・ MEXT “School Basic Survey”・ MIC “Employment Status Survey”

・ MIC “Population Census”・ Geographical Survey Institute, MLIT “Land Survey of Prefectures, Shi, Ku, Machi and Mura”・ MIC “Economic Census for Business Frame”・ Small and Medium Enterprise Agency “White Paper on Small and Medium Enterprises in Japan”・ Toyo Keizai, Inc. “Foreign Affiliated Companies in Japan: A Comprehensive Directory”

*including establishments owned by national and local governments

(Service Activities) (all prefectures total)

*2011 average

Industry and Employment in Tokyo - A Graphic Overview 20172

Tokyo is the Hub of Japan’s Economic Activity

Tokyo is the Hub of Japan’s Economic Activity

13,515,271（10.6％）Population

20152,191㎢（0.6％）

Land Area

2016 8,174,194（13.7％） Number of Employed

Persons (based on workplace)

201015,576,130

Daytime Population

2010

653,819（11.8％）Number of Establishments

2014

３4,879（8.9％）Number of Factories

2011

157,968（11.2％）

Number of Establishments(Wholesale, Retail)

2014

8.9trillion yen（3.1％）Value of Manufactured

Goods Shipments

2011

167.9 trillion yen（35.1％）Annual Product Sales (Wholesale, Retail)

2014

15.2 trillion yen（21.7％）

Value of Exports (Port of Tokyo, Haneda Airport, and Narita Airport)

2016(preliminary)22.6 trillion yen（34.2％）

Value of Exports (Port of Tokyo, Haneda Airport, and Narita Airport)

2016(preliminary)

889（15.8％）Number of Research

Institutes for National Sciences

2,419（76.6％）

Number of Foreign-Affi liated Companies

2016

95.4trillion yenGross Prefectural Domestic Product (Nominal)

FY2015(preliminary)

2,964（50.1％）Number of Enterprises

Capitalized at 1 Billion Yen or More

2014

4,508 thousand yen（147.1％）Prefectural income per capita

FY2013

201.2 trillion yen（42.4％）Loans Outstanding of Banks (Domestically Licensed)

end of December 2016

81.5％Ratio of Tertiary IndustryPersons Engaged in Work

201219.1 trillion yen（19.2％）Gross Prefectural Product (Service Activities)

FY2013 22,590（34.1％）Number of Establishments

(Information and Communications)

2014

11.9 millionNumber of Foreign Travelers to Tokyo

2015

272,754（15.6％）Number of Enterprises

2014 99.0％Ratio of Small andMedium Enterprises

2012

137（17.6％）Number of Students 746,397（26.0％）

Number of Universities

FY2016

[Sources] ・ TMG “Annual Report on Prefectural Accounts, preliminary and estimated”

・ CAO “Annual Report on Prefectural Accounts”・ BOJ “Deposits and Loans Market”・ TMG Bureau of Industrial and Labor Affairs materials・ MIC / METI “Economic Census for Business Activity : Tabulation of individual industries (Manufacturing Industry)”

・ Tokyo Customs materials・ METI “Census of Commerce”・ MEXT “School Basic Survey”・ MIC “Employment Status Survey”

・ MIC “Population Census”

・ Geographical Survey Institute, MLIT “Land Survey of Prefectures, Shi, Ku, Machi and Mura”

・ MIC “Economic Census for Business Frame”

・ TMG Bureau of Industrial and Labor Affairs research

・ Toyo Keizai, Inc. “Foreign Affiliated Companies in Japan: A Comprehensive Directory”

Percentage in parentheses represents the proportion to the national total.

2014

※ 2005 average

*including establishments owned by national and local governments

Industry and Employment in Tokyo - A Graphic Overview 2017 3

Note: Top 6 prefectures in gross prefectural product are listed.Source: CAO “Annual Report on Prefectural Accounts”

Gross domestic product (nominal) by country (worldwide, 2014)

Gross prefectural product (nominal) and prefecturalincome per capita by prefecture (nationwide, FY2013)

173.5

103.5

46.1 38.7

29.9 28.3 24.2 21.4 20.5 18.6 17.8 14.5 14.1

USA

Chi

na

Japa

n

Ger

man

y

UK

Fran

ce

Braz

il

Italy

Indi

a

Rus

sia

Can

ada

Aust

ralia

Sout

h Ko

rea

Spai

n

Mex

ico

Net

herla

nds

Toky

o

Turk

ey

13.8 12.9 8.8 8.6 8.0 0

20

40

60

80

100

120

140

160

180(100 billion US dollars)

93.1

37.3 35.430.2

20.7 19.8

4,508

2,995

3,579

2,972

2,859 3,019

0

1,000

2,000

3,000

4,000

5,000

0

20

40

60

80

100

120(1,000 yen)(Trillion yen) Prefectural income

per capita (right axis)

Gross prefectural product (nominal)Gross prefectural product (nominal)To

kyo

Osa

ka

Aich

i

Kana

gaw

a

Saita

ma

Chi

baPercentage in the whole country (right axis)

Others

Company

Individual proprietorships

4.2 4.9

2.3 1.6

15.8

1.1

6.2

4.3

9.3 4.8

1.8

4.8 4.0

0

5

10

15

20

25

30

35

40

0

5

10

15

20

25

30(10,000 establishments) (%)

11.8

8.2 10.1

34.1

12.2 11.2 13.0

16.1

18.8

12.8

9.9 10.8 11.4 11.0

Educ

ation

, lear

ning s

uppo

rt

Medic

al, he

alth c

are an

d welf

are

Servi

ces,

n.e.c.

Living

-relat

ed an

d pers

onal

servi

ces a

nd am

usem

ent s

ervice

s

Acco

mmod

ation

s, ea

ting

and d

rinkin

g ser

vices

Scien

tific re

searc

h, pro

fessio

nal

and t

echn

ical se

rvice

s

Real

estat

e and

good

s re

ntal a

nd le

asing

All in

dustr

ies to

tal

Cons

tructi

on

Manu

factur

ing

Inform

ation a

nd co

mmun

ication

s

Transp

ort an

d post

al activ

ities

Who

lesale

and r

etail t

rade

Finan

ce an

d ins

uran

ce

Number of establishments and percentagein the whole country by industry (Tokyo, 2014)

Overview of Tokyo’s Economy

1 Tokyo’s Economy is Comparable to a Country’s Economy

4 Establishments Mainly in “Information and Communications” are Concentrated in Tokyo

5 Number of Small and Medium Enterprises (SMEs) Accounts for 99% of All Enterprises

Note: The industrial divisions which have 1,000 or more small and medium enterprises are listed. SMEs and small enterprises are defined in accordance with the definitions in the Small and Medium-sized Enterprise Basic Act. Excludes the establishments which are unable to classify to whether the business establishments of SMEs or large enterprises because either industrial classifications, number of regular employees or capital size is unknown. The number of medium enterprises is equivalent to the number of deducting small enterprises from SMEs. The percentage of SMEs = number of SMEs/number of all enterprises×100.

Source: MIC, METI “Economic Census for Business Activity” reorganized by TMG Bureau of Industrial and Labor Affairs

While Forming a Huge Economic Base, Tokyo Faces

Note: Industry divisions which have 10,000 establishments or more are listed.Source: MIC “Economic Census for Business Frame”

Number of enterprises by industry and enterprise size, and percentage of SMEs (Tokyo, 2012)

Educ

atio

n, le

arni

ng s

uppo

rt

Medic

al, he

alth c

are an

d welf

are

Serv

ices

, n.e

.c.

Living

-relat

ed an

d pers

onal

servi

ces a

nd am

usem

ent s

ervice

s

Acco

mm

odat

ions,

eatin

g an

d dr

inking

serv

ices

Scien

tific r

esea

rch, p

rofes

siona

l an

d tec

hnica

l ser

vices

Real

esta

te a

nd g

oods

rent

al an

d lea

sing

All in

dust

ries

tota

l

Cons

truct

ion

Man

ufac

turin

g

Inform

ation

and c

ommu

nicati

ons

Tran

spor

t and

pos

tal a

ctivit

ies

Who

lesa

le a

nd re

tail t

rade

Fina

nce

and

insu

ranc

e

3.7 4.8

1.7 1.1

9.9

0.4

4.9 3.6

6.0

3.5

0.9 2.4

1.6

99.0

99.6 98.5

96.1

99.2 98.7

97.0

99.7 99.2 99.6 99.5 99.5 99.7

97.2

88

90

92

94

96

98

100

0

2

4

6

8

10

12

14

Large enterprise Medium enterprise(10,000 enterprises)

Percentage of SMEs (right axis)

Small enterprise(%)

Note: The above comparison is for 2014 (calendar year), except Tokyo (from April 1st, 2014 to March 31st, 2015) and Australia (from July 1st, 2014 to June 30th, 2015). The gross prefectural product in Tokyo is converted to US dollars by using the 12-month simple average of the monthly average value of the interbank spot central rates at the Tokyo Foreign Exchange Market (1 US dollar = 109.92 yen).

Source: TMG “Annual Report on Prefectural Accounts”

4 Industry and Employment in Tokyo - A Graphic Overview 2017

Agriculture, forestry and fishing

Gross prefectural domestic product in Tokyoyear-on-year growth rate

(Real, Chain-linked method) (Tokyo)

Gross prefectural domestic product (nominal) by economicactivity and percentage of the tertiary industry (Tokyo)

15(FY)

Electricity, gas and water supplyConstructionManufacturingWholesale and retail trade

Finance and insurance Real estateInformation and communications

Service activities Producers of government services

0.5

-2.7

-3.8

1.2

2.1

0.4

2.0

-0.7 -0.3

-1.1

-5

-4

-3

-2

-1

0

1

2

3

2007 08 09 10 11 12 13 14 15 16(FY)

(%)

(%)

7.87.87.87.8 6.56.5 6.36.36.56.5 6.36.3

20.9 18.8 18.4

11.79.0 8.9

11.212.3 12.4

11.311.6 11.8

19.920.0 20.4

6.45.9 5.9

87.9 Percentage of tertiary industry (right axis) 88.7 88.7

0

10

20

30

40

50

60

70

80

90

0

10

20

30

40

50

60

70

80

90

100

110

2007 08 09 10 11 12 13 14

(Trillion yen)

100.2

Terti

ary i

ndus

try

95.0 95.5

ManufacturingManufacturingConstructionConstruction

Wholesale and retail tradeWholesale and retail trade

Finance and insuranceFinance and insurance

Real estateReal estateTransportTransport

Information and communicationsInformation and communications

Service activitiesService activities

Producers of government servicesProducers of government services

ManufacturingManufacturingConstructionConstruction

Wholesale and retail tradeWholesale and retail trade

Finance and insuranceFinance and insurance

Real estateReal estateTransportTransport

Information and communicationsInformation and communications

Service activitiesService activities

Producers of government servicesProducers of government services

Transport

Mining

Producers of private non-profit services to households

75 35 350（万人）

0 75

男性女性

2040年（推計）

年齢別・男女別人口ピラミッド（東京）

1980年

2015年

90歳以上85～8980～8475～7970～7465～6960～6455～5950～5445～4940～4435～3930～3425～29

20～2415～1910～14

5～90～4

Tokyo's Economic Base and Characteristics

3

7

Tertiary Industry Accounts For About 90% of Gross Prefectural Domestic Product in Tokyo

Compared with Other Countries in the World, Rate of Aging is High in Tokyo

2 Growth of Gross Prefectural Domestic Product in Tokyo is Expected to be Negative for Three Consecutive Years

Note: Figures for FY2015 are preliminary and fi gures for FY2016 are estimates.Source: TMG “Annual Report on Prefectural Accounts”, “Annual Report on Prefectural

Accounts, preliminary and estimated”

Note: Taxes and duties on imports, and deduction of consumption taxes for gross capital formation are excluded. Figures for FY2015 are preliminary.

Source: TMG “Annual Report on Prefectural Accounts”, “Annual Report on Prefectural Accounts, preliminary and estimated”

Note: Figures before 2015 are actual values based on the "Population Census". Figures for 2040 are estimates by the Office of the Governor for Policy Planning of TMG.

Source: MIC“Population Census”, TMG“Tokyo 2020 action plan”

6 As Demographic Aging Progresses, Population Composition by Age Drastically Changes

Acceleration of Demographic Aging

75 35 350(10,000 persons)

0 75

2040(Estimates)

Population pyramid by age and sex (Tokyo)

1980

2015

90 years oldand over85-8980-8475-7970-7465-6960-6455-5950-5445-4940-4435-3930-3425-2920-2415-1910-14

5-90-4

FemaleMale

Note: Population aging rate is the percentage of the population aged 65 and over in the total population. Figures for Japan and Tokyo before 2015 are the actual values based on the“Population Census”. Figures for Tokyo from 2020 and later are estimates by the Offi ce of the Governor for Policy Planning of TMG.Figures for Japan from 2020 and later are estimates by using the results of “Population Census 2010” as the standard population and do not link to the fi gures in 2015. All fi gures of the other countries are estimates.

Source: MIC “Population Census”, National Institute of Population and Social Security Research “Population Projection for Japan”, TMG “Tokyo 2020 action plan”, UN “World Population Prospects”

Population aging rate by country and region (worldwide)

3.8

22.7 Tokyo29.3

5.7

26.6 Japan

36.1

South Korea

30.8

China

24.6

Sweden

23.8

UK

23.8

France

26.0 Germany

31.3

USA

21.9

0

5

10

15

20

25

30

35

40

1960 65 70 75 80 85 90 95 2000 05 10 15 20 25 30 35 40

（％）

Estimates

5Industry and Employment in Tokyo - A Graphic Overview 2017

Exports and imports value by countryand region (Port of Tokyo)

024681012

2006

07

08

09

10

11

12

13

14

15

16

(Trillion yen)

USA EU China Asia (except China) Middle East Others

Export 5.0

5.6

5.4

3.6

4.6

4.7

4.7

5.5

6.1

6.2

0 2 4 6 8 10 12(Trillion yen)

Import7.0

7.7

8.0

6.6

7.5

8.1

8.5

10.0

11 .0

11.4

5.8 10.6

Export Import8.9

6.2

11.5

7.5

5.3 5.6

3.4

1.0 1.6

2.7

12.6 11.4

5.4 4.6

3.9 3.3

5.0

3.6 2.4

0.6 0

2

4

6

8

10

12

14

(Trillion yen)

Exports and imports value by port (nationwide, 2015)

Nar

ita A

irpor

t

Port

of T

okyo

Port

of N

agoy

a

Port

of Y

okoh

ama

Kans

ai A

irpor

t

Port

of K

obe

Port

of O

saka

Port

of C

hiba

Port

of K

awas

aki

Port

of M

ikaw

a

1,178

357

220 203 169 146 107 87

0

200

400

600

800

1,000

1,200

1,400

(Companies) Composition ratio of number of foreign-affiliated companies

by prefecture (2016)

Tokyo76.6

Kanagawa8.5

Osaka 3.9 Hyogo 2.5

Chiba1.4

Others7.2

Total in Japan3,158

Number of foreign-affiliated companies by nationality ofits parent company (nationwide, 2016)

USA

Ger

man

y

UK

Fran

ce

Sout

h Ko

rea

Switz

erla

nd

Chi

na

Net

herla

nds

Composition ratio of numberof overseas affiliates

by prefecture (FY 2014)

Tokyo50.4

Osaka12.7

Aichi 9.2 Kanagawa 4.9 Shizuoka 3.0

Others19.8

Total inJapan24,011

2004 05 06 07 08 09 10 11 12 13

3.6 China7.8 2.6

ASEAN４

4.0 1.9

NIEs 3

2.7 1.3

2.7

North America

3.2

2.4

Europe

2.8

1.4

Other s

2.1

0

5

10

15

20

25

30

14(FY)

(1,000 companies)

15.0

23.9

7.6

4.2

2.7 1.4 3.2

2.8 2.1 24.0

Other Asia

Asia

Number of overseas affiliates bylocated region (nationwide)

(%)

(%)


Both People and Products Mingle and Globalization is

1

43

Note: In case there are more than one parent companies, all of them are counted. Top 8 countries are listed.

Source: Toyo Keizai Inc. “Foreign Affi liated Companies in Japan: A Comprehensive Directory”

Note: Values for 2016 are preliminary. Hong Kong is not included in China.Source: MOF “Trade Statistics of Japan”

Note: Top 10 ports by exports and imports value are listed.Source: MOF “Trade Statistics of Japan”

Note: Figures are as of each FY end. ASEAN4: Malaysia, Thailand, Indonesia, Philippines. NIEs3: Singapore, Taiwan, South Korea. “Overseas affiliate” is the collective term of an overseas subsidiary (a foreign company with at least 10% investment from the Japanese investors) and an overseas sub-subsidiary (a foreign company with at least 50% investment from overseas subsidiaries with at least 50% investment from the Japanese investors).

Source: METI “Basic Survey on Overseas Business Activities”, Prepared by TMG Bureau of Industrial and Labor Affairs based on RESAS (Original data: Reorganizing and processing METI “Basic Survey on Overseas Business Activities”)

2Tokyo Attracts Foreign-Affiliated Companies

Exports and Imports Value at Port of Tokyo Turns to Decline

Companies in Tokyo are ActivelyExpanding Overseas

Total Exports and Imports Value at Port of Tokyo is the Second Largest in Japan


Singapore

Brussels

ParisVienna

Seoul

Geneva

(Meetings)

Number of international meetings by city (worldwide)

736

298

665

316 308

58

249

494

363 362

215

172

242

187

0

100

200

300

400

500

600

700

800

900

1,000

2006 07 08 09 10 11 12 13 14 15Bangkok

Berlin

Barcelona

Number of foreign visitors to Japanby country and region (nationwide)

81.2 China

499.4 637.3

211.7 South Korea

400.2

509.0

130.9 Taiwan

367.7

416.7

Hongkong

152.4

183.9

81.7 81.7

USAUSAUSAUSA

103.3 103.3

124.3 124.3

160.6 Others

333.4

398.0

733.4

1,973.7

2,403.9

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2,600

2006 07 08 09 10 11 12 13 14 15 16

(10,000 persons)

Australia

Thailand

Tokyo wards area

(Million persons) (10,000 tons)

Number of passengers and volume of cargo handled (Haneda Airport)Number of passengers

Number of passengers

Volume of cargo handled

Volume of cargo handled

1.8 10.6 12.8

65.0

62.2 62.5

66.8

72.7 75.3

0

10

20

30

40

50

60

70

80

2007 08 09 10 11 12 13 14 15

0.6

26.9 33.2

71.4

76.6

75.6 72.0

103.5

108.8

0

20

40

60

80

100

120

2007 08 09 10 11 12 13 14 15

International flights

3.50 million tons

1.81 million tons

International flights73 Million

Domestic flights

Domestic flights

204 Million

Composition ratio of number of passengers andvolume of cargo handled by airport (nationwide, 2015)

Narita International38.2

KansaiInternational

22.1

17.4 6.4 5.9 5.9 6.8

Haneda 30.6 9.0 8.1 8.1 7.8 7.1 Other airports

34.0

0 20 40 60 80 100

0 20 40 60 80 100

Osaka InternationalNew Chitose

Chubu International

Narita International 58.2 Kansai

International19.9 9.5

5.1

4.9

Haneda 41.7 Naha

12.3 11.3

FukuokaFukuoka

10.9 10.9 7.2 13.9

(%)

(%)


Domestic flights


Domestic flights


Domestic flights


Domestic flights

Persons

Persons


Expanding in Tokyo

5 6

7

Note: Top 7 countries and regions in 2016 are listed. Figures for 2016 are estimates.

Source: JNTO materials

Note: For the composition ratio, top 6 airports are listed.Source: MLIT “Airport Management Report”

Note: Top 10 cities by number of international meetings in 2015 are listed.Source: JNTO materials

At Haneda Airport, Number of International Flight Passengers andVolume of Air Cargo Handled are Increasing Every Year

In Recent Years, Number of Foreign Visitors to Japan is Drastically Increasing

Tokyo Wards Area Hosted 6th Highest Number of International Meetings in the World



3

62

1

As Finance and R&D Support Functions are Accumulated,

Deposits and Loans are Accumulated in Tokyo Universities and Research Institutes are Accumulated in Tokyo

IT Related Businesses Account for About 60%of Investment Destinations of Venture Capitals

Tokyo is Ranked No.5 in the World asGlobal Financial Centre

Composition ratio of deposit and loanby prefecture (nationwide, 2016)

Tokyo 35.0

42.4

Osaka8.3

7.9

5.3

4.0

4.9

3.8

3.8 Others 42.7

38.1

0 20 40 60 80 100

Deposits764.4 trillion yen

Loans474.0 trillion yen

Kanagawa

Aichi

Saitama

Fukuoka

3.83.8

(%)

Note: Figures for deposits and loans are as of end of December (in domestic banking books). Resolution and Collection Corporation and Japan Post Bank are excluded. Offshore accounts are not included. Deposits include negotiable certifi cates of deposit. Top 5 prefectures are listed.

Source: BOJ “Deposits and Loans Market”

Note: Number of universities is as of May 1st, 2016. Number of scientific and development research institutes is as of 2014 (including establishments owned by national and local governments). Number of patent attorneys is as of end of 2015.

Source: MEXT “School Basic Survey”, MIC “Economic Census for Business Frame”, Japan Patent Offi ce “Annual Report”

Source: VEC “VEC YEARBOOK2016”

Note: Top 7 cities in 2016 are listed. Figures are as of September each year. This is an index taking the related data and the results of hearing investigation to f inancial market par ticipants into account, with regard to the f ive fields: “Business environment”, “Development level of financial industry”, “Infrastructure”, “Human capital” and “Reputation”.

Source: Z/Yen Group “Global Financial Centres Index”

Singapore

625

Tokyo

734

Global International Financial Centres Index (worldwide)

806London

787 New York

673

697

Hong Kong

608

San Francisco

621

Boston

600

650

700

750

800

850

2007 08 09 10 11 12 13 14 15 16

795794

752748

720719

17.6

17.2

Tokyo 54.9

7.1

Osaka15.1

Kanagawa7.4

7.2

Aichi6.4

5.1 15.1

4.8 Others 59.3

5.9 59.8

0 20 40 60 80 100

Number ofuniversities

777

Number of scientificand development

research institutes6,633

Number ofpatent attorneys

10,890

（％）

Hokkaido 4.8

2.6 2.6

Hyogo 4.8Hyogo 4.8

Ibaraki4.9

Ibaraki4.9

Composition ratio of institutes related to research andintellectual property by prefecture (nationwide)

IT related57.9

Biotechnology /Medical /

Healthcare

Biotechnology /Medical /

Healthcare

10.0 10.0

Industrials / Energy /

Other industries

Industrials / Energy /

Other industries 15.7 15.7

Products andServices

16.4

(%)

Investment of venture capitals by industry sector(persentage of overall investment)

(nationwide, FY2015)


Gross domestic spending on R&Dand ratio to GDP (worldwide, 2014)

432.6

344.6

159.2

99.6 72.8

54.3 41.5 38.2 30.2 25.4

2.72.7

2.02.0

2.72.7

3.6

2.9

4.3

2.3 1.7

1.2

3.0

1.3

0

1

2

3

4

5

0

50

100

150

200

250

300

350

400

450

500(billion dollars)

Ratio to GDP (right axis)

USA

Chi

na

Japa

n

Ger

man

y

Sout

h Ko

rea

Fran

ce UK

Rus

sia

Chi

nese

Tai

pei

Italy

USA

Japan

Germany

China

UK

FranceSouth Korea

29.8

2.5

8.5

16.0 18.1

24.9

44.2

14.6

5.3

46.9

57.4

0

10

20

30

40

50

60

70

(1,000 applications)

Number of PCT international patent applicationsby applicants' country of residence (worldwide)

2005 0706 08 09 10 11 12 13 14 15

(%)

Business fields where SMMs desire toenhance or expand their businesses (Tokyo, 2015)

28.2

27.4

18.0

13.8

13.2

11.6

11.3

7.7

5.3

20.3

0 10 20 30

Medical care, welfare and nursing care related

Environment and energy related

Agriculture, food and biotechnology related

Health and sports related

Robot related

Infrastructure development and maintenance related

Aerospace related

Risk management and disaster prevention related

Nanotechnology related

Others

23.5

Life science30.3 28.0

Information technology

20.9

8.9

Environmental science and technology 12.0

7.7 Nanotechnology 10.0

8.8

Energy10.6

2.4 Space exploration 2.6 1.0

Oceanology

1.2 0

5

10

15

20

25

30

35(100 billion yen)

Expenditure on R&D by selected objective (nationwide)

2005 0706 08 09 10 11 12 13 14 15 (FY)

(%)

5

8

4

7

As Finance and R&D Support Functions are Accumulated, Tokyo Can Be Expected to Collaborate with Growing Sectors

Japan is No. 2 in the World in Terms of Number of International Patent Applications by Residents

Corporate R&D Expenditures in the Fields of Life Science, Information Technology and Communications are High

R&D Expenditures of Japan is No. 3 in the World

Small and Medium-sized Manufacturers (SMM) are Expected to Expand Their Businesses to Fields of Medical Care, Welfare and Nursing Care, Environment and Energy

Note: Top 7 countries in 2015 are listed. Figures for 2015 are estimates.Source: WIPO “Patent Cooperation Treaty Yearly Review”

Note: R&D expenditures spent within organizations by enterprises with the capital of 100 million yen or more, nonprofit organizations and public institutions, universities, etc.

Source: MIC “Survey of Research and Development”

Note: Top 10 countries are listed. Figure in 2013 is used only for USA.Source: OECD “Gross domestic spending on R&D”

Note: Multiple answers allowed. Only answers from companies who intend to enhance their businesses or extend those to new business fields were aggregated.

Source: TMG “Current Status of SMEs in Tokyo (Manufacturing Industry Edition)”




Economy of Japan and Tokyo during 2016 as Seen

1

2

3

Indexes of Business Conditions has been Improving since October

Real GDP Growth Rate has been Changing toward Positive

Nikkei Stock Average Turned Upward Over the Year End

Indexes of business conditions (nationwide)（2010 ＝100）

114.8

75

80

85

90

95

100

105

110

115

120

125

2000 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

GDP growth rate by quarter (nationwide)

Nominal

1.6

Real

1.2

-20

-15

-10

-5

0

5

10

Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ2006 07 08 09 10 11 12 13 14 15 16

(%)

(1,000 yen)

Closing price

Nikkei stock average (nationwide)

20.87

19.11

6

8

10

12

14

16

18

20

22

2006 07 08 09 10 11 12 13 14 15 16

Note: CI: coincident index. The shadowed areas indicate recessions. December 2016 revised release.Source: CAO “Indexes of Business Conditions”

Note: Quarterly Estimates of GDP for Oct. - Dec. 2016 (The 2nd preliminary). Figures are seasonally adjusted annual rates. Changes from the previous quarter.Source: CAO “SNA (National Accounts of Japan)”

Note: Figures for the period from January 2006 to December 2016 are listed. Figures are daily closing prices.Source: Nikkei Inc. materials


Economic Trends of Tokyo in 2016

4

7

5

6

through Data

Production Indices Showed Decline for 2 Consecutive Years

Trade Balance Recorded a Surplus for the First Time in 6 years

Sales of Departmentstores Turned Downward

Number of Visitor Arrivals Exceeded 24 Million

Note: Monthly values are seasonally adjusted. Values for Tokyo in December and 2016 represent preliminary fi gures.

Source TMG “Indices of Industrial Production”, METI “Indices of Industrial Production”

Note: The value of imports for 2016 and December are preliminary fi gures.Source: MOF “Trade Statistics of Japan”

Note: The fi gures of visitor arrivals for December and 2016 are estimates. Source: Japan National Tourism Organization (JNTO) “Visitor Arrivals & Japanese

Overseas Travelers”

(2010 average = 100)2016

Production index

97.8 97.6

98.3

nationwide

99.9

95.2

97.6

94.3 Tokyo

90

95

100

105

2012 13 14 15 16

100.6

Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Oct

Nov Dec

Sales of departmentstores and supermarkets (Tokyo wards area) and convenience stores (greater Kanto area),

the number of new vehicles sold (Tokyo)

2016

2012 13 14 15 16 Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Oct

Nov Dec

1.7

Departmentstores-2.1

0.0 -1.6 -2.1

0.2

4.1

Supermarkets

- 0.5

3.5 3.1 4.0

Convenience stores

3.0

Number of newvehicles sold

-10

0

10

20

30 (Percentage changes from the previous year / from the same month of the previous year)

23.1

1.7

-1.2

3.7

(%)

3.8

-15.9 -17.8 Value of imports

-2.6 -2.7 -7.4

-12.9 Value of exports

5.4

-30

-20

-10

0

10

20

63.7 63.7 70.0 70.7 5.4

6.7 6.0 6.0 6.0

01234567

015

30

45

60

75

90

(Trillion yen)(Trillion yen) Value of exportsValue of imports

Trade value (nationwide)

Monthly value (right axis)Monthly value (right axis)Annual totalAnnual total Monthly value (right axis)Monthly value (right axis)Annual totalAnnual total

2016

2012 13 14 15 16

(Percentage changes from the previous year / from the same month of the previous year)

(%)

66.0 66.0

Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Oct

Nov Dec 2012 13 14 15 16

Number of visitor arrivals and Japaneseoverseas travelers (nationwide)

Visitor Arrivals

Japanese overseas travelers

836 836

2,404

1,849 1,7121,712

185205

128128146146

0

50

100

150

200

250

0

500

1,000

1,500

2,000

2,500

(10,000 persons)(10,000 persons)

34.4

21.8

52.0

Visitor Arrivals

15.6 8.8 5.6 3.3

Japanese overseas travelers

8.0

-15

0

15

30

45

60


Annual totalAnnual total Monthly value (right axis)Monthly value (right axis)Annual totalAnnual total Monthly value (right axis)Monthly value (right axis)

(%)

2016

Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Oct

Nov Dec

Note: Figures for departmentstores and supermarkets are sales value of existing establishments, fi gures for convenience stores are of all establishments. The greater Kanto area consists of one metropolis (Tokyo) and 10 prefectures (Ibaraki, Tochigi, Gunma, Saitama, Chiba, Kanagawa, Niigata, Yamanashi, Nagano and Shizuoka).

The number of new vehicles sold is the total number of passenger cars, compact cars, medium-duty trucks, small trucks and buses sold, and does not include special vehicles, trailers and others unable to classify.

Source: METI “Monthly Report on the Current Survey of Commerce”, Japan Automobile Dealers Association materials


2

4

1

3

Consumer Price Index Remained Almost Negative Compared with the Same Month of the Previous Year

Corporate Goods Price Index Turned Upward since November Services Producer Price Index has been on Upward Trend

Note: Fresh food is excluded.Source: MIC “Consumer Price Index”

Note: DI is calculated by the percentage of companies who answered that business conditions are “favorable” minus that of companies who answered “unfavorable”. “Total” is the total of the four industries.

Source: TMG “Business Conditions of Small and Medium Enterprises in Tokyo”

Source: BOJ “Monthly Report on the Corporate Goods Price Index”, “Monthly Report on the Services Producer Price Index”

Note: Bankrupt companies with liabilities of 10 million yen or more.Source: TMG “Enterprise Bankruptcies in Tokyo” (researched by Tokyo Shoko Research, Ltd.)

Business Environment of the enterprises in Japan and Tokyo during 2016 as Seen through Data

(2015 average = 100)

Consumer price index

99.4 99.5

99.5 99.8

99.0

99.5

100.0

100.5

101.0

→2016→2015

(Consumer price index)

2.2

-0.2

2.2

-0.6-1.0-0.50.00.51.01.52.02.5

Nationwide

Nationwide

Tokyo wards area

Tokyo wards area

(Percentage changes from the same monthof the previous year)

2010-Base 2015-Base

(%)

Jan

Feb

Mar Ap

rM

ay Jun

Jul

Aug

Sep

Oct

Nov

Dec Jan

Feb

Mar Ap

rM

ay Jun

Jul

Aug

Sep

Oct

Nov

Dec

Corporate goods price index andServices producer price index (nationwide)

102.2

103.5

100

101

102

103

104

Services producer price index (2010 average = 100)

100.6

97.1

95

96

97

98

99

100

101

Corporate goods price index (2015 average =100)

→2016→2015

Jan

Feb

Mar Ap

rM

ay Jun

Jul

Aug

Sep

Oct

Nov

Dec Jan

Feb

Mar Ap

rM

ay Jun

Jul

Aug

Sep

Oct

Nov

Dec

Business conditions DI forSMEs by industry (Tokyo)Business conditions DI forSMEs by industry (Tokyo)

Manufacturing Wholesale trade Retail tradeServices Total

-33

-22

-39

-36

-55

-46

-33

-21

-39

-30

-70

-60

-50

-40

-30

-20

-10

0

2012 13 14 15 16

Annual total 2016 (right axis)

Number of corporate bankruptcies

-1.4

-8.0 -6.3

1.5

-4.7

-4.1 5.1

-22.5 -30

-20

-10

0

10

20

(%) (Percentage changes from the previous year /from the same month of the previous year)

12,124

8,446

2,470 1,654

675 710

143 2,470 1,654 143 145 145

0

200

400

600

800

1,000

1,200

0

5,000

10,000

15,000(Cases) (Cases)

2012 13 14 15 16

Nationwide

Nationwide

Tokyo

TokyoTokyo

Jan

Feb

Mar Ap

r

May Jun

Jul

Aug

Sep

Oct

Nov

Dec

Nationwide

Number of Corporate Bankruptcies has been on the Decline

Business Conditions Among SMEs Have been alternating between growth and decline



Economic Trends of Tokyo in 2016

2

4

1

3

Unemployment Rate Continues to Improve Active Job Openings-to-Applicants Ratio is on the Rise

Source: MIC, TMG “Labour Force Survey”

Note: Establishments with 5 employees or more.Source: MHLW, TMG “Monthly Labour Survey”

Note: Monthly values are seasonally adjusted.Source: MHLW, Tokyo Labour Bureau “Report on Employment Service”

Note: Establishments with 5 employees or more.Source: MHLW, TMG “Monthly Labour Survey”

Employment environment of Japan and Tokyo during 2016 as Seen through Data

Unemployment rate

4.5

3.8 Tokyo

4.3

3.2

3.1

3.5 3.3

2.9 Nationwide

2

3

4

5

Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ2012 13 14 15 16 2015 16

(%)

Number of active job openings (Tokyo)

Number of active job applicants (Tokyo)

Number of active job openings and job applications, active job openings-to-applicants ratio

1.08

2.01 1.90 2.06

0.80 1.36

1.29 1.43

0

0.5

1

1.5

2

2.5(Times)

25.6

36.7 35.8 37.1

18.3 18.9 18.3 18.9 18.0 18.0

05

10152025303540

2012 13 14 15 16

(10,000 persons)

23.7 25.6

23.7

Tokyo

Nationwide

Active job openings-to-applicant ratio

2016

Jan

Feb

Mar Ap

r

May Jun

Jul

Aug

Sep

Oct

Nov

Dec

Monthly total cash earnings

41.2 40.7 34.3

Tokyo Nationwide

31.7 31.4 26.9

54.7

31.7 31.4 26.9

54.7

70.8

0

20

40

60

80

2011 12 13 14 15

(10,000 yen)

-0.2 0.1 0.0

0.5

-1.1

-0.1 0.1

2.1

-2

-1

0

1

2

3


Nationwide

Tokyo

(%)

2016

Jan

Feb

Mar Apr

May Jun

Jul

Aug

Sep

Oct

Nov

Dec

Tokyo Nationwide


11.2 12.0

11.210.0

11.0 10.510.0 10.5 11.2 11.2 11.3

02

4

6

8

10

12

14

2011 12 13 14 15

(Hours)

1.0

-1.0 -2.8 -1.8-0.8

0.4

-4.3 -5.8

-12-9-6-3036

Monthly non-scheduled hours worked

Nationwide

Tokyo

(%)

2016

Jan

Feb

Mar Ap

r

May Jun

Jul

Aug

Sep

Oct

Nov

Dec

Total of Non-scheduled Working Hours are Changing within the Negative Scale from the Previous year

Total Cash Earnings Tend to Move Almost Positive from the Previous Year


Overview of Tokyo’s Economy Tokyo is the Hub of Japan’s ...

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