The Osaka area industrialised rapidly in the twentieth century and became the driving force behind the country's economic transformation until its pre-eminent position was taken by Tokyo. Previously known for its textile industry, it reinvented itself into a centre for heavy industry and high finance. In 1994, the area's economic prospects received a boost with the opening of Kansai International Airport on a nearby man-made island.

Tokyo has usurped Osaka's position as the economic centre of Japan, and most of the companies formerly headquartered in Osaka have moved east. Nonetheless, Osaka remains an economic powerhouse and the prefecture has recorded a GDP bigger than the individual GDPs of all but eight countries in the world in the past several years. However, the city has been hard hit by Japan's ongoing recession and many businesses have closed, particularly those that used to cater to businessmen out entertaining clients. On the upside, the city has been revitalized by the spate of new developments in the Osaka Bay area.