Uncertainty over the outlook due to a slowdown in overseas economies and political uncertainty

「During the interim accounting period, Japan's economy was affected by the situation in the Middle East, with rising energy and raw material prices putting pressure on corporate earnings. Personal consumption also remained sluggish, as household expenses continued to rise due to higher prices, leading to more consumers holding back on purchases and adopting spending behaviors focused on protecting household finances.」

「During the fiscal year, the Japanese economy faced an uncertain outlook. Overseas economies were expected to slow due to the effects of the trade policies of various countries, while geopolitical factors surrounding Ukraine and the Middle East created a risk of higher resource and grain prices. In personal consumption, household awareness of protecting finances strengthened amid concerns about the outlook due to rising prices, leading to an increase in consumption behavior focused on saving.」

「During the interim accounting period, positive developments were seen, including an agreement in negotiations between Japan and the United States on trade policy and other matters. However, the overseas economy is expected to slow, and resource and grain prices face the risk of rising due to geopolitical factors related to Ukraine, the situation in the Middle East and other areas, leaving the domestic economic outlook opaque. In addition, concerns among households about protecting their finances have intensified due to anxiety about the future caused by rising prices, and consumption behavior focused on saving has increased.」

「During the fiscal year, Japan’s economy was recovering gradually as economic activity normalized and inbound demand increased. However, the domestic economic outlook remained opaque, with concerns that consumer sentiment would decline due to persistently elevated resource and grain prices and continued inflation resulting from geopolitical factors related to Ukraine, the situation in the Middle East and other areas.」

「During the interim accounting period, Japan’s economy was recovering gradually as economic activity normalized and inbound demand increased. However, raw material prices and energy costs remained elevated due to geopolitical risks related to Ukraine, the situation in the Middle East and other factors, and the domestic economic outlook remained opaque.」

「During the cumulative first quarter, Japan’s economy was on a gradual recovery trend as economic activity normalized and inbound demand also recovered. Meanwhile, resource prices and other prices remained elevated due to geopolitical risks related to Ukraine, the situation in the Middle East and other factors, leaving the domestic economic outlook opaque.」

「While restrictions on activity related to COVID-19 were eased and the disease was reclassified as Category V under the Infectious Diseases Control Law from 8 May 2023, the economy was moving toward normalization. Meanwhile, resource prices remained elevated due to sharp exchange-rate volatility and the prolonged situation in Ukraine, and the outlook remained opaque.」

「During the cumulative third quarter, Japan’s economy was moving toward normalization as restrictions on activity related to COVID-19 were eased and, from 8 May, the disease was reclassified as Category V. Meanwhile, resource prices remained elevated due to sharp exchange-rate volatility and the prolonged situation in Ukraine, and the outlook remained opaque.」

「During the cumulative second quarter, Japan’s economy was moving toward normalization as restrictions on activity related to COVID-19 were eased and, from 8 May, the disease was reclassified as Category V. Meanwhile, resource prices remained elevated due to sharp exchange-rate volatility and the prolonged situation in Ukraine, and the outlook remained opaque.」

「During the cumulative first quarter, Japan’s economy steadily progressed toward normalization as restrictions on activity related to COVID-19 were eased and, from 8 May, the disease was reclassified as Category V under the Infectious Diseases Control Law. Meanwhile, resource prices remained elevated due to sharp exchange-rate volatility and the prolonged situation in Ukraine, leaving the domestic economic outlook opaque.」

「During the fiscal year, Japan’s economy became unstable. Restrictions on activity related to COVID-19 were eased and progress was made toward balancing infection control and economic activity, but exchange-rate volatility caused by the sharp depreciation of the yen and higher resource prices resulting from the situation in Ukraine and other factors continued to weigh on the domestic economy.」

「During the cumulative third quarter, Japan’s economy was moving toward balancing infection control and economic activity as restrictions on activity related to COVID-19 were eased. Meanwhile, the domestic economic outlook remained opaque due to the rise in resource prices resulting from exchange-rate volatility caused by the sharp depreciation of the yen and the situation in Ukraine, as well as the resurgence of COVID-19 infections from November onward.」

「During the cumulative first quarter, Japan’s economy saw an improvement in the infection situation following the end of the priority preventive measures for COVID-19 in March and the spread of vaccines and therapeutic drugs, with progress toward balancing infection control and consumption activity. Meanwhile, pressure on resource prices intensified amid exchange-rate volatility caused by the sharp depreciation of the yen and rising geopolitical risks related to the situation in Ukraine, leaving the domestic economic outlook opaque.」

「The state of emergency was lifted on 30 September, and as the number of infections declined significantly from October onward amid progress in vaccinations, consumer sentiment showed signs of recovery. However, the domestic economic outlook remained opaque due to the emergence of new variants and soaring crude oil and raw material prices.」

「The state of emergency was lifted on 30 September, and as the number of infections declined significantly from October onward amid progress in vaccinations, consumer sentiment showed signs of recovery. However, the domestic economic outlook remains unpredictable due to the emergence of new variants and soaring crude oil and raw material prices.」

「During the cumulative second quarter, Japan’s economy was affected by the resurgence of COVID-19 infections. Economic activity continued to stagnate, resulting in an extremely difficult business environment.」

「During the cumulative first quarter, Japan’s economy remained in a difficult situation, particularly in terms of personal consumption, as the spread of COVID-19 led to the application of priority preventive measures in the affected areas and a third state of emergency covering Tokyo, Osaka, Hyogo and Kyoto, the 4 prefectures, was declared from 25 April 2021. The coverage was expanded to 9 prefectures with Fukuoka and Aichi added from 12 May and Hokkaido, Okayama and Hiroshima from 16 May.」

「During the fiscal year, Japan’s economy was affected by the global COVID-19 pandemic. The government issued a state of emergency on 7 April 2020, placing major restrictions on economic activity and causing the economy to deteriorate rapidly, particularly in terms of personal consumption. After the state of emergency was lifted, economic activity gradually resumed and the economy showed signs of recovery, supported by measures such as the government-led Go To campaign. However, a second state of emergency was declared from 8 January 2021, leaving the outlook extremely uncertain.」

「During the cumulative second quarter, Japan’s economy remained in a difficult situation due to the global COVID-19 pandemic. Following the government’s declaration of a state of emergency on 7 April 2020, economic activity was subject to major restrictions, and the economy deteriorated rapidly, particularly in terms of personal consumption. Even after the state of emergency was lifted, measures to prevent the spread of infection, including requests to refrain from going out and work from home, continued to be implemented. In addition, the impact of unsettled weather, including the heavy-rain disaster in July, resulted in an extremely difficult business environment.」

「During the cumulative first quarter, Japan’s economy was affected by the global COVID-19 pandemic. Exports, including inbound consumption, remained sluggish, and the government issued a state of emergency on 7 April 2020. Measures to prevent the spread of infection, including requests to refrain from going out and work from home, were implemented, and the economy, particularly personal consumption, continued to deteriorate rapidly.」

「During the fiscal year, Japan’s economy was affected by an opaque global outlook and rising domestic labor costs. Small and medium-sized enterprises remained cautious about business conditions, while consumer sentiment had begun returning to a savings-oriented mindset following the consumption tax hike, and the spread of COVID-19 from mid-February 2020 was certain to deal a blow to personal consumption.」

「During the cumulative third quarter under review, against a backdrop of a global economy in which uncertainty over the outlook remained and rising domestic labor costs, small and medium-sized companies continued to take a cautious view of business conditions, while general consumer sentiment shifted back toward frugality following the consumption tax increase.」

「During the cumulative second quarter under review, against a backdrop of a global economy that continued to slow amid uncertainty over the outlook and rising domestic labor costs due to the labor shortage, small and medium-sized companies took a cautious view of business conditions, while individuals continued to show a persistent preference for frugality.」

「During the cumulative first quarter under review, the slowing global economy and rising labor costs due to the labor shortage led small and medium-sized companies and domestic-demand-oriented companies to remain cautious about investment, while the wave of frugality also cast a shadow over consumer sentiment.」

「During the fiscal year, as the global economy, which had been on a recovery trend, began to slow due to trade friction and other factors, sentiment among domestic-demand-oriented companies was affected by rising labor costs due to the labor shortage and higher prices, and the recovery in personal consumption stalled.」

「During the cumulative third quarter under review, Japan's economy initially showed signs of improving corporate earnings at large companies, but concerns over the outlook, including crude oil prices, US-China trade friction and the worsening labor shortage in Japan, led companies to remain cautious about investment. Meanwhile, in personal consumption, uncertainty over factors including the planned consumption tax rate increase in October this year led consumers to remain cautious about spending.」

「During the cumulative second quarter under review, Japan's economy initially showed signs of recovery in business sentiment among large companies, but the impact of increasingly uncertain US-China trade friction and a succession of natural disasters cast a shadow over sentiment among small and medium-sized service businesses and led general consumers to remain cautious about spending.」

「During the cumulative first quarter under review, Japan's economy showed signs of recovery in sentiment among large companies against a backdrop of a solid global economy, but rising labor costs and raw-material prices squeezed earnings at small and medium-sized companies and domestic-demand-oriented companies, while the resulting increase in prices led individuals to remain cautious about consumption.」

「During the fiscal year, business sentiment among large companies recovered against a backdrop of a strong global economy. Meanwhile, rising labor costs due to the labor shortage and higher prices resulting from surging crude oil prices led small and medium-sized companies and domestic-demand-oriented companies to remain cautious about investment, and individuals to remain cautious about recovering their consumption appetite.」

「During the cumulative third quarter under review, exports from Japan began to increase against a backdrop of a strong global economy, and business sentiment among large companies recovered. Meanwhile, rising labor costs due to the labor shortage led small and medium-sized companies and domestic-demand-oriented companies to remain cautious about investment, while personal consumption continued to lack momentum in its recovery amid persistent frugality.」

「During the cumulative second quarter under review, Japan's economy entered a gradual recovery trend as signs of recovery emerged in the performance of large companies and employment and income conditions improved. However, small and medium-sized companies remained cautious about investment, while the recovery in general consumer sentiment remained stalled.」

「During the cumulative first quarter under review, Japan's economy remained in an uncertain environment due to uncertainty over overseas economic conditions and rising labor costs reflecting the domestic labor shortage.」

「During the fiscal year, Japan's economy showed some signs of a gradual recovery, but there was no momentum behind the recovery due to the stagnation of emerging-market economies, the future impact of economic policies in Europe and the United States, and concerns over the domestic spillover effects of political instability in East Asia. Meanwhile, personal consumption remained stagnant amid uncertainty over the outlook.」

「During the cumulative third quarter under review, Japan's economy remained in an uncertain environment, affected by repercussions from overseas economies, including the slowdown in emerging-market economies, the UK's Brexit issue and uncertainty over trade with the United States associated with the change in administration.」