Catalina Espinosa
Research expert covering society, economy, and politics for Europe and the EU
Tokyo - statistics & facts
Since the establishment of the Edo Shogunate in 1603, Tokyo Prefecture has been Japan鈥檚 capital. Despite being the third smallest of all the 47 prefectures in terms of gross area, Tokyo has grown into one of the world's megacities. It is home to around 14 million people, making up over 10 percent of the nation鈥檚 total population. Tokyo is not only the economic and cultural hub of Japan but also the political and administrative center. The national Cabinet and all ministries reside in the prefecture, as well as the national Diet, the Supreme Court, and the central bank of Japan. Tokyo generated a gross prefectural domestic product of around 113.7 trillion Japanese yen in the 2021 fiscal year, accounting for about 20 percent of the nation鈥檚 GDP. The wholesale and retail trade industry is the most significant contributor to the prefecture鈥檚 economy, followed by real estate.
Municipalities other than the 23 wards have experienced a population decrease resulting from declining birth rates and a growing elderly population in recent years. The metropolitan government subsidizes these municipalities through multiple assistant programs to facilitate further development in the areas despite the diminishing number of inhabitants.
Like other prefectures in the nation, Tokyo is no exception in its vulnerability to natural disasters. Due to the disproportional dependency of Japan on the capital, a natural disaster striking this region would cause catastrophic damage to the nation鈥檚 economy. To lessen this overdependency, the revitalization of local economies has been one of the focal points of the Japanese government in recent years. As the COVID-19 pandemic introduced the possibility of remote work, the government has also promoted migration from Tokyo to other areas. The interest of Tokyo residents in moving to other regions has grown after the COVID-19 outbreak and still continued to rise in 2023.
Special wards and other municipalities
Tokyo is composed of 23 special wards and 39 other municipalities, including 26 cities, five towns, and eight villages. The Tokyo Metropolitan Government oversees infrastructure and administration of, for example, water supply, sewerage services, and firefighting in the 23 special wards. Local governments in each ward handle matters such as education, welfare, and housing. 39 other municipalities, by comparison, function as independent bodies and handle services and programs for residents. Additionally, the 39 municipalities finance their budgets directly from regional taxes like inhabitant tax, fixed assets tax, and special land ownership tax. In the 23 wards, the metropolitan government collects the tax revenue and proportionally allocates it to the ward governments.Municipalities other than the 23 wards have experienced a population decrease resulting from declining birth rates and a growing elderly population in recent years. The metropolitan government subsidizes these municipalities through multiple assistant programs to facilitate further development in the areas despite the diminishing number of inhabitants.
Tokyo centralization
Tokyo has continued to attract a lot of migrants from other prefectures. With many renowned universities and business headquarters in the prefecture, young citizens particularly aim to move to Tokyo. As of 2023, Tokyo recorded a net population gain of approximately 58,490, the highest number by far compared to other metropolitan areas in the country. This tendency over the last decades has led to an overconcentration of Japan鈥檚 population in the prefecture. It has accelerated the depopulation in other prefectures, especially in rural areas, and consequently challenged regional economies.Like other prefectures in the nation, Tokyo is no exception in its vulnerability to natural disasters. Due to the disproportional dependency of Japan on the capital, a natural disaster striking this region would cause catastrophic damage to the nation鈥檚 economy. To lessen this overdependency, the revitalization of local economies has been one of the focal points of the Japanese government in recent years. As the COVID-19 pandemic introduced the possibility of remote work, the government has also promoted migration from Tokyo to other areas. The interest of Tokyo residents in moving to other regions has grown after the COVID-19 outbreak and still continued to rise in 2023.
