This article analyzes the financial and economic outlook for Kyoto Prefecture and Shiga Prefecture published by the Bank of Japan Kyoto Branch in July 2025.
The economy of Kyoto Prefecture and Shiga Prefecture is recovering gradually, although some areas show weakening movements. Personal consumption is picking up gradually with some areas showing weakening movements, with department store sales decreasing centered on tax-free sales (-15.3% year-on-year), supermarket sales showing weak movements, convenience store sales flat, drugstore sales increasing, and passenger car sales picking up (+6.7% year-on-year). Tourism shows a slowing pace of increase, with major hotel occupancy in Kyoto city at +5.8% year-on-year, room occupancy rate at 87.2%, and average room rates rising +11.2% year-on-year.
Equipment investment is generally increasing, with the regional corporate short-term economic survey showing 2024 at +3.2% and 2025 planned to exceed the previous year for the fifth consecutive year (+9.1%). Housing investment shows a slowing pace of increase, with new housing starts in Kyoto Prefecture decreasing -49.9% and Shiga Prefecture -11.0% year-on-year. Public investment continues at high levels, while June public works contracts decreased -44.5% in Kyoto Prefecture and -26.7% in Shiga Prefecture year-on-year.
Production is picking up gradually, with general-purpose, production, and business machinery increasing gradually by sector, transportation equipment moving within a flat range, and electronic parts and devices continuing at low levels. Employment and income environment is improving gradually, with effective job opening ratios of 1.29 times in Kyoto Prefecture and 1.02 times in Shiga Prefecture, same as the previous month. Prices exceed the previous year, with consumer price index (excluding fresh food) at +3.8% in Kyoto city and +2.9% in Otsu city year-on-year.
The article shows that while the economy of Kyoto Prefecture and Shiga Prefecture is on a gradual recovery trend, some areas show weakening movements in personal consumption and tourism, with challenges including slowing pace of housing investment increase.