Ibaraki's economy is based on energy production (particularly nuclear energy), chemical and precision machining industries, research institutes, and tourism. Agriculture, fishing, and livestock are also important sectors in the prefecture.
[8]
Ibaraki's vast flat terrain make it highly suitable for industrial development. This complements its proximity to the Tokyo metropolitan area, giving it a high reputation as an industrial base. The prefecture is also home to
Tsukuba, Japan's most extensive research and academic city, and the birthplace of
Hitachi, Ltd.
[9]
With extensive flat lands, abundant water, and suitable climate, Ibaraki is among the prefectures with the highest agricultural production in Japan. It plays an important role in supplying food to the Tokyo metropolitan area. Its main products include melons, pears, peppers, various varieties of rice and sugar cane, as well as flowers and ornamental plants.
It also supplies other food crops to the rest of the country. As of March 2011, the prefecture produced 25% of Japan's bell peppers and Chinese cabbage.
[10]
It is one of the prefectures with the highest fish production in the country; in the Pacific Ocean, Lake Kasumigaura, other lagoons and rivers, various species of fish are obtained.