Tokyo’s economy ranks as one of the world’s largest. It is also the most populous metropolis with well over 32 million people. Whereas such rankings and statistics may differ in different quarters, it is no secret that Tokyo outdoes most other cities in terms of economic power.
Global Financial Index
The world today measures the supremacy of a city or nation using numerous variables; political intimidation, nuclear power, and technological advancement just to mention a few. However, universal standards produce three simple and clear-cut facets: gross regional product or economic output, banking and financial services, and innovative power. Tokyo’s economy emerges at the top when utilizing the combination of all three.
Tokyo’s Success
The 1980’s economic boom in Japan resulted in an upsurge of real estate prices as well as the value of the Yen. By the time the economy leveled, Tokyo stood as a formidable rival against the economic dynasties of the time. To add to that, the Japanese work-till-you-drop culture has been a substantial economic stimulus over the decades.
Tokyo is Japan’s commercial and political epicenter, with a large percentage of manufacturing, service, publishing, transportation, and financial services situated here. Tokyo economy stands side by side with New York and London as global economic hubs. Aside from world-renowned insurance institutions and investment banks, the city houses the Tokyo Stock Exchange (TSE). A merger with Osaka Securities Exchange in January 2013 saw TSE rise to second place below New York Stock Exchange in market capitalization.
City congestion is a challenge, but population inflow is an advantage for the economy. These increased population trends mean that Tokyo does not suffer brain drain. Tokyo’s success rides on a combination of diversity, strategy and hard work. As of right now, Tokyo’s economy produces a GDP that rivals that of entire nations such as Brazil and Italy.