This article analyzes the regional financial and economic outlook for Okinawa Prefecture published by the Bank of Japan Naha Branch in July 2025.
The economy in Okinawa Prefecture is on an expansion trend, maintaining favorable conditions compared to other prefectures. Personal consumption is increasing gradually, with May department store and supermarket sales, convenience store sales, drugstore sales, and home appliance sales all exceeding the previous year, while automobile registrations fell below the previous year. Tourism is on an expansion trend, with May visitor arrivals increasing significantly by +18.6% year-on-year, May major hotel room occupancy rates also exceeding the previous year, and June major hotel room occupancy rate at 66.7%.
Public investment maintains high levels, while June public works guarantee contract amounts fell below the previous year. Equipment investment moves within a flat range, with Tankan equipment investment amounts (all industries basis) showing -0.1% year-on-year for 2024 and -1.4% decrease outlook for 2025, while the Okinawa General Bureau Finance Department's corporate business sentiment survey shows +2.8% increase outlook for 2025. Housing investment shows weak movements, with May new housing starts falling below the previous year.
Employment and income conditions are improving gradually, with May effective job opening ratio falling below the previous month but April cash salaries exceeding the previous year. Prices are at higher levels than other regions, with May consumer price index (excluding fresh food) at +4.1% year-on-year. Corporate bankruptcies (liabilities of 10 million yen or more) showed both numbers and total liabilities below the previous year in June.
Financially, both May real deposits and loans in the prefecture exceeded the previous year, with local three banks' loan contract average interest rates (comprehensive stock basis) exceeding the previous month. The regional economy is expected to continue its expansion trend in the near term due to tourism's favorable performance and unique economic structure.
The article shows that Okinawa Prefecture's economy maintains an expansion trend centered on tourism and is in favorable conditions compared to nationwide economic recovery.