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Effects of Economic crisis on Tokyo Essay Example

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Effects of Economic crisis on Tokyo

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Effects of Economic crisis on Tokyo. The recession didn’t make a huge impact on the major cities; however, as expected, Tokyo took the hardest hit of these financial crises.Tokyo is not just the financial centre of the Japanese economy but also that of East Asia, and one of the three ‘command centers’ in the world of finance, alongside New York City and London. Tokyo stands in the world today as the largest metropolitan economy. In accordance with a study conducted by PricewaterhouseCoopers, the total urban area of the city stands at 35.2 million people, with a GDP of over USD 1,100 as per the statistics of the year 2006; these figures made it the largest urban agglomeration GDP in the world. Tokyo’s economic strength is also visible from the fact that amongst the Global-500 companies, 50 are based in the Japanese capital, compared to the second ranked city that contains only 25 (PricewaterhouseCoopers, 2007).

Tokyo is not only a big international financial centre, but is also the operating hub of a number of large scale investment banks, insurance companies, etc. (The Economist, 2007). For 14 years in a row till 2006, the capital was ranked as the most expensive city in the world by Economist Intelligence Unit (EIU). Tokyo Stock Exchange is also considered the largest in the region, second largest in the world based on the marker capitalization, and the fourth largest based on the average shares turnover.Reduced Spending: At present, the unemployment in Tokyo has reached its highest levels, with the Consumer Confidence Index (CCI) and the Producer Confidence Index (PCI) falling rapidly. This has caused a drastic cut in average spending in the region; the average house hold spending has declined by 0.8% in the month of August, depicting the fifth straight month of year-on-year declines.  Consumer prices, which have been in decline continuously for the last 23 months, were down 0.9 percent in August from a year earlier (Haynes, 2006).Unemployment: The official unemployment has risen to 5.5% with predictions that it will rise further in near future; this 5.5% is the highest levels in the post-war period.  Tetsuro Sugiura, chief economist for Fuji Research Institute of Tokyo (FRIT), has predicted that unemployment will rise to the levels of 6% in coming months. FRIT reported that the number of jobs lost through forced layoffs and bankruptcies jumped for the. Effects of Economic crisis on Tokyo.

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preview essay on Effects of Economic crisis on Tokyo
  • Pages: 13 (3250 words)
  • Document Type: Essay
  • Subject: Other
  • Level: Ph.D.
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