Tokyo - Economy

Economy

Tokyo has the largest metropolitan economy in the world. According to a study conducted by PricewaterhouseCoopers, the Tokyo urban area (35.2 million people) had a total GDP of US$1.479 trillion in 2008 (at purchasing power parity), which topped the list. As of 2009, 51 of the companies listed on the Global 500 are based in Tokyo, almost twice that of the second-placed city (Paris).

Tokyo is a major international finance center, houses the headquarters of several of the world's largest investment banks and insurance companies, and serves as a hub for Japan's transportation, publishing, and broadcasting industries. During the centralized growth of Japan's economy following World War II, many large firms moved their headquarters from cities such as Osaka (the historical commercial capital) to Tokyo, in an attempt to take advantage of better access to the government. This trend has begun to slow due to ongoing population growth in Tokyo and the high cost of living there.

Tokyo was rated by the Economist Intelligence Unit as the most expensive (highest cost-of-living) city in the world for 14 years in a row ending in 2006. This analysis is for living a corporate executive lifestyle, with items like a detached house and several automobiles.

The Tokyo Stock Exchange is Japan's largest stock exchange, and third largest in the world by market capitalization and fourth largest by share turnover. In 1990 at the end of the Japanese asset price bubble, it accounted for more than 60% of the world stock market value. Tokyo had 8,460 ha (20,900 acres) of agricultural land as of 2003, according to the Ministry of Agriculture, Forestry and Fisheries, placing it last among the nation's prefectures. The farmland is concentrated in Western Tokyo. Perishables such as vegetables, fruits, and flowers can be conveniently shipped to the markets in the eastern part of the prefecture. Komatsuna and spinach are the most important vegetables; as of 2000, Tokyo supplied 32.5% of the komatsuna sold at its central produce market.

With 36% of its area covered by forest, Tokyo has extensive growths of cryptomeria and Japanese cypress, especially in the mountainous western communities of Akiruno, Ōme, Okutama, Hachiōji, Hinode, and Hinohara. Decreases in the price of lumber, increases in the cost of production, and advancing old age among the forestry population have resulted in a decline in Tokyo's output. In addition, pollen, especially from cryptomeria, is a major allergen for the nearby population centers.

Tokyo Bay was once a major source of fish. Presently, most of Tokyo's fish production comes from the outer islands, such as Izu Ōshima and Hachijōjima. Skipjack tuna, nori, and aji are among the ocean products.

Tourism in Tokyo is also a contributor to the economy.