This article analyzes trends in Shizuoka Prefecture's financial and economic conditions published by the Bank of Japan Shizuoka Branch in July 2025.
The economy in Shizuoka Prefecture is recovering gradually although some areas show weakening movements, with the June 2025 Tankan showing corporate business sentiment roughly flat. In final demand trends, public investment continues at high levels (74 consecutive months of same assessment), equipment investment increases centered on manufacturing (25 consecutive months of same assessment), personal consumption increases gradually despite effects of price increases (6 consecutive months of same assessment), while exports and housing investment are weakening.
Personal consumption details show department store and supermarket sales recovering gradually, convenience store sales recovering gradually, drugstore sales increasing (50 consecutive months of same assessment), home appliance sales recovering gradually, new car registrations picking up, while hotel and inn guest numbers changed from gradually recovering despite being affected by labor shortages to moving within a flat range. Production moves within a flat range, with automobiles and auto parts, food products, and chemicals moving within a flat range by industry, electrical machinery picking up, while motorcycles and motorcycle parts, general-purpose, production, and business machinery, paper and pulp, and musical instruments show weak movements.
Employment and income environment is improving gradually (20 consecutive months of same assessment), with consumer prices (excluding fresh food) at +3.4% year-on-year exceeding the previous year. Corporate bankruptcies (liabilities of 10 million yen or more) are roughly at pre-pandemic levels. Financially, deposits exceed the previous year, loans also exceed the previous year, with loan contract average interest rates (comprehensive stock basis, regional and second regional banks) rising month-on-month. Specifically, May real deposit balances were +1.3% year-on-year and loan balances +2.0% year-on-year. June corporate bankruptcies were 23 cases (+76.9% year-on-year) with total liabilities of 2.8 billion yen (+116.1% year-on-year).
The article shows that while Shizuoka Prefecture's economy is on a gradual recovery trend, some challenges remain including weak exports and housing investment, and labor shortage impacts in tourism.