Osaka was traditionally considered Japan’s economic hub. By the Kofun period (300–538) it had developed into an important regional port, and in the 7th and 8th centuries, it served briefly as the imperial capital. Osaka continued to flourish during the Edo period (1603–1867) and became known as a center of Japanese culture. Following the Meiji Restoration, Osaka greatly expanded in size and underwent rapid industrialization. In 1889, Osaka was officially established as a municipality. The construction boom accelerated population growth throughout the following decades, and by the 1900s, Osaka was the industrial hub in the Meiji and Taishō periods. Osaka made noted contributions to redevelopment, urban planning and zoning standards in the postwar period, the city developed rapidly as one of the major financial center in the Keihanshin Metropolitan Area.
The gross city product of Osaka in fiscal year 2004 was ¥21.3 trillion, an increase of 1.2% over the previous year. The figure accounts for about 55% of the total output in the Osaka Prefecture and 26.5% in the Kinki region. In 2004, commerce, services, and manufacturing have been the three major industries, accounting for 30%, 26%, and 11% of the total, respectively. The per capita income in the city was about ¥3.3 million, 10% higher than that of the Osaka Prefecture. MasterCard Worldwide reported that Osaka ranks 19th among the world’s leading cities and plays an important role in the global economy. Osaka’s GDP per capita (Nominal) was $59,958.($1=\120.13) However, by 2020, Osaka ranked 5th as most expensive cities due to flatlining consumer prices and government subsidies of public transportation. Historically, Osaka was the center of commerce in Japan, especially in the middle and pre-modern ages. Nomura Securities, the first brokerage firm in Japan, was founded in the city in 1925, and Osaka still houses a leading futures exchange. Many major companies have since moved their main offices to Tokyo. However, several major companies, such as Panasonic, Sharp, and Sanyo, are still headquartered in Osaka. Recently, the city began a program, headed by mayor Junichi Seki, to attract domestic and foreign investment. In the 2017 Global Financial Centres Index, Osaka was ranked as having the 15th most competitive financial center in the world and fifth most competitive in Asia (after Singapore, Hong Kong, Tokyo, and Shanghai).
