Seminar in TTC Osaka Area
Event name: Regional Economic Report by Osaka Prefecture and City of Osaka
1. Recent economic situation of Osaka :
Mr. Toshiya Yamamoto, Senior Researcher, Osaka Pref. Industry Economic Research Center,
Mr. Yuhei Tokuda, Economic Research Chief, City of Osaka Urban Industry Promotion Center
2. Report on Strength and Weakness of Osaka as manufacturing site
Mr. Ryo Ogawa, Researcher, Osaka Pref. Industry Economic Research Center
(By Mr. Yamamoto) February 2012’s Composite Index (CI) of Osaka Pref. was 90.4 and Kinki region was 93.8; CI increased last three month. All Japan’s CI in February 2012 was 93.7 and it as consecutive increase for last 4 months. According to companies’ confidence survey conducted in early March among 1651 companies (8.8% Large Corporation, 91.2% SME / 33% Manufacturer, 67% Non manufacturer), it showed their confidence in economy has been stable (improved for large corporation). Sales and shipping have been also stable (improved for large corporation). Profit level has also been stable (worsened for large corp.) Employment had continuous shortage. In demand side (i.e. export, investment, consumption), export has been 7 months consecutive decrease. Domestic demand had both increase and decrease. For supply side, production had no change, but employment had shortage for last three quarters.
(By Mr. Tokuda) Nominal GDP growth recorded worst in recent years. For GDP of Oct.- Dec. 2011 was negative growth due to Thai Flooding and high yen. Economic recovery is expected to be lead by export; however, machinery export which has 2/3 of export value has remained sluggish. Looking at economy of City of Osaka, it shows gradual recovery.
Osaka Prefecture’s GDP share in Japan in 2009 was 7.4%. The largest share was 10.2% in 1970. GDP growth rate of Osaka Prefecture has been lower than figure all Japan. Osaka’s Industry production index remains low due to decrease of shipping amount and number of enterprises. Because of high land cost and shortage of availability Osaka has no been competitive compare to other prefectures such as Shizuoka, Hyogo or Aichi. Benefits of setting up factories in Osaka are closeness to Industry hub or HQ of companies. Osaka is weak especially in hiring skilled technical worker.
Reported by Thai Trade Center Osaka 2012/05/21