Uncertainty about the Outlook Due to Overseas Political Developments and Geopolitical Risks

「Meanwhile, as heightened tensions in the Middle East persist and energy and raw material prices remain high, personnel and logistics costs are also trending upward, while labor shortages have become an urgent issue. The outlook therefore remains unpredictable.」

「There is growing concern that raw material prices and energy costs will rise further due to the situation in Ukraine and the Middle East, the impact of Trump's tariffs, and the ongoing depreciation of the yen.」

「Amid numerous downside risks, including soaring resource and raw material prices, higher import prices due to the weaker yen, and a worsening labor shortage, resource shortages have become apparent as tensions in the Middle East escalate. The environment surrounding companies has become increasingly uncertain and remains unpredictable.」

「Meanwhile, the outlook remains uncertain, as uncertainty is increasing due to the continuing effects of US trade policy and geopolitical risks in the Middle East and elsewhere.」

「The business environment remains unpredictable, as uncertainty in the trading environment is increasing due to a reversal toward yen appreciation and US tariff policies, while increasingly severe labor shortages are raising concern over further upward pressure on labor costs」

「Looking ahead, uncertainty over the global economy remains unresolved due to rising geopolitical risks and a slowdown in the Chinese economy. Amid reports that higher raw material prices and labor shortages will affect business performance, rising labor and logistics costs are expected to become a drag, and difficult conditions are expected to continue, particularly for small and medium-sized enterprises.」

「However, with uncertainty over the global economy persisting as concerns grow over China's economic outlook and the slowdown in European and US economies due to inflation and high interest rates, small and medium-sized enterprises are expected to maintain a cautious stance. This is because higher labor costs are expected to become a drag as wage growth accelerates.」

「As the so-called Taiwan contingency has come sharply into focus, if political instability or deteriorating diplomatic relations involving Japan, China and related countries become apparent, the safety of employees we have assigned to the company could be threatened, and our close relationship with the company could be impaired, even temporarily, potentially affecting our business performance and operations.」

「However, amid concern over a downturn in overseas economies due to monetary tightening in Europe and the United States and confusion over China's COVID-19 policies, economic trends remain unpredictable. A shift in the Bank of Japan's easing policy is coming into view as it addresses the weaker yen and higher prices, and conditions are expected to become particularly severe for small and medium-sized enterprises.」

「During the cumulative first quarter under review, efforts were made to balance measures to control infectious diseases with social and economic activity, and some areas showed signs of recovery as the flow of people began to recover. However, amid concern that global inflation caused by the uncertain situation in Ukraine and surging resource and energy prices could trigger an economic recession,」

「However, the outlook remains unpredictable, with the renewed spread of the disease due to the emergence of variants and the intensification of US-China tensions among the concerns, and this situation is expected to continue.」

「During the fiscal year under review, Japan's economy remained under severe conditions as business sentiment was pressured by a slowdown in overseas economies, including China, compounded by tight labor supply and demand. In the second half of the fiscal year, just as the effects of the consumption tax increase appeared likely to be limited and US-China negotiations finally began to make progress, the global spread of the novel coronavirus suddenly emerged, dealing a severe blow to economies in Japan and abroad, with the situation expected to become even more prolonged and serious.」

「During the cumulative third quarter under review, Japan's economy remained under severe conditions as business sentiment was pressured by a slowdown in overseas economies, including China, and the effects of the consumption tax increase, compounded by tight labor supply and demand.」

「During the cumulative second quarter under review, business sentiment deteriorated amid concerns over a slowdown in the global economy due in part to the prolonged US-China trade friction. Although domestic demand was expected to continue providing support, the effects of the consumption tax increase and the prolonged deterioration in Japan-South Korea relations remained unpredictable, and concern over downside risks was expected to continue growing.」

「During the cumulative first quarter under review, Japan's economy saw corporate earnings deteriorate, particularly in manufacturing, due in part to a slowdown in the Chinese economy accompanying the intensification of the US-China trade friction. Although domestic demand was expected to provide support, the economy was expected to remain stalled going forward.」

「During the fiscal year under review, Japan's economy remained uncertain as business sentiment was pressured by concerns over a slowdown in the Chinese economy and IT-related demand, while corporate earnings were recently revised downward, indicating a cautious stance. External risks, including the US-China trade friction, remained unresolved.」

「During the cumulative third quarter under review, Japan's economy remained on a gradual recovery trend as improvements in corporate earnings and the employment environment continued. However, amid concerns over a weakening global economy due in part to the prolonged US-China trade friction, signs of a pause emerged, and the outlook remained uncertain.」

「During the cumulative second quarter under review, Japan's economy remained on a gradual recovery trend, supported by improvements in corporate earnings. However, the outlook remained uncertain due to the intensifying US-China trade friction and surging crude oil prices.」

「During the cumulative first quarter under review, Japan's economy remained on a gradual recovery trend, supported by improvements in corporate earnings and the employment environment and a gradual recovery in private consumption. However, the outlook remained uncertain, with growing concern over an economic slowdown due in part to escalating trade friction.」

「However, the outlook remains uncertain due to concerns about overseas political developments and rising geopolitical risks.」