Concerns about a downturn in the domestic economy due to an Asian economic slowdown, Brexit and yen appreciation

「Under these circumstances, our group has newly formulated “Medium-Term Management Plan 2030: DM Mitsui Group 2.0: Creating Value through Transformation, Toward the Next Growth Stage,” covering the fiscal years ending March 2027 through March 2030.」

「During the interim consolidated fiscal period, Japan's economy showed a gradual recovery trend against the backdrop of improving employment and income conditions and continuing growth in inbound demand. However, the outlook remained uncertain due to the prolonged rise in prices, downside risks to the economy from unstable international conditions, and concerns over the impact of US policy developments.」

「During the interim consolidated fiscal period, Japan's economy showed a gradual recovery due in part to strong inbound demand, but downside risks to the economy were significant due to continued price increases caused by yen depreciation and unstable international conditions, and the outlook remained uncertain.」

「During the six-month period of the second quarter, Japan's economy showed a gradual recovery due to increases in personal consumption and inbound demand, among other factors. However, inflation driven mainly by soaring raw material prices and yen depreciation continued amid unstable international conditions and heightened vigilance over geopolitical risks, while concerns also arose over the effects of the US monetary tightening policy, leaving the outlook uncertain.」

「During the three-month period of the first quarter, socioeconomic activity moved toward normalization following changes to the legal classification of COVID-19, but the operating environment remained uncertain due to the prolonged situation in Ukraine, soaring raw material prices and the increasing trend of yen depreciation.」

「While the domestic COVID-19 situation temporarily stabilized and society began moving toward normalization, soaring energy and raw material prices due to the prolonged situation in Ukraine and a sharp depreciation of the yen began to weigh again on corporate activity and consumer sentiment, and the operating environment remained severe.」

「Thereafter, various domestic restrictions were temporarily lifted at the end of September as vaccination programs became more widespread, and signs of an economic recovery emerged. However, conditions remained uncertain due to the resurgence of infections accompanying the emergence of new variants, higher crude oil prices, yen depreciation, soaring raw material prices and increasing geopolitical risks.」

「During the fiscal year, Japan's economy remained in generally severe conditions as the spread of COVID-19 led to declarations of a state of emergency and requests to refrain from going out, substantially restricting socioeconomic activity and affecting not only corporate performance but also employment conditions.」

「Personal consumption showed signs of losing momentum, while capital investment and exports also declined, resulting in generally weak conditions.」

「During the fiscal year, Japan's economy remained on a gradual recovery trend against the backdrop of improving employment and income conditions, despite the effects of natural disasters such as earthquakes and torrential rain. However, concerns over US-China trade friction and instability in the international situation could not be dispelled, and conditions remained uncertain.」

「Against this backdrop, while strengthening the profitability of existing businesses, the Group invested in SIS’88 Pte Ltd and 中糧糖業遼寧有限公司 to secure a solid business foundation by reallocating management resources to growth businesses.」

「During the six-month period of the second quarter of the fiscal year, Japan's economy remained on a recovery trend against the backdrop of solid employment and income conditions, but the outlook remained uncertain, partly due to the increasing protectionist stance of the US. Personal consumption continued to lack strength due to the effects of natural disasters such as earthquakes and typhoons and a tendency to economize amid concerns about the future.」

「During the three-month period of the first quarter of the fiscal year, Japan's economy remained on a recovery trend against the backdrop of improving employment and income conditions, and personal consumption also showed a gradual recovery, but the outlook remained uncertain, including due to developments in US trade policy.」

「Although the outlook for overseas economies is generally improving, conditions remain uncertain due to US policy developments and geopolitical risks, including the situation on the Korean Peninsula.」

「Although the outlook for overseas economies is generally showing signs of recovery, conditions remain uncertain due to developments in US policy and rising geopolitical risks, including the situation on the Korean Peninsula.」

「During the three-month period of the first quarter of the fiscal year, Japan's economy remained on a gradual recovery trend against the backdrop of improving corporate earnings and employment and income conditions. Personal consumption also showed some improvement, although it lacked strength. The outlook for overseas economies is also showing signs of recovery, including steady performance in the US economy and signs that China's economic slowdown has bottomed out, but it remains necessary to continue monitoring developments in US policy and the UK's Brexit issue, among other changes in conditions.」

「Against the backdrop of the economic slowdown in emerging Asian economies, including China, the UK's Brexit issue, and fluctuations in the foreign exchange and equity markets affected by the change in the US administration from November onward, uncertainty in the global economy intensified further, and conditions remained uncertain.」

「During the nine-month period of the third quarter of the fiscal year, Japan's economy remained on a trend toward improving employment and income conditions against the backdrop of economic and monetary policies implemented by the government and the Bank of Japan. However, personal consumption showed little growth, while uncertainty in the global economy intensified further due to the economic slowdown in emerging Asian economies, including China, the UK's Brexit issue, and fluctuations in the foreign exchange and equity markets following the change in the US administration from November onward, leaving the outlook uncertain.」

「Concerns over a downturn in the domestic economy intensified amid the economic slowdown in emerging Asian economies, including China, the UK's Brexit issue and the yen's appreciation.」