Uncertainty Surrounding Economic Conditions and Foreign Exchange and Crude Oil Price Volatility

「During the interim consolidated accounting period (1 March 2026 to 31 August 2026), Japan's economy remained on a moderate recovery track, supported by improvements in employment and income conditions. However, the outlook remains uncertain due to currency fluctuations stemming from developments in monetary and trade policies in various countries and geopolitical risks, as well as concerns that continued inflation may slow personal consumption.」

「当第１四半期連結累計期間(2026年３月１日から2026年５月31日まで)におけるわが国経済は、引き続き雇用・所得環境の改善により緩やかな回復基調で推移するものの、不安定な国際情勢に伴う原材料価格の高騰や円安の影響による物価上昇が継続しており、個人消費の伸び悩みが懸念されるなど、依然として先行き不透明な状況が続いております。」

「During the consolidated fiscal year from 1 March 2025 to 28 February 2026, the Japanese economy showed a gradual recovery trend against a backdrop of improved corporate earnings and employment and income conditions. However, the outlook remained uncertain due to declining inbound demand caused by the impact of US tariff policies and deteriorating Japan-China relations, as well as inflation, particularly in energy resources, caused by heightened tensions in the Middle East and the yen's depreciation.」

「米国の関税政策の影響や日中関係の悪化によりインバウンド需要の減少のほか、中東情勢の緊迫化や円安の進行によりエネルギー資源を中心とした物価上昇等、景気の先行きは不透明な状況が続いております。」

「During the six-month interim consolidated accounting period from 1 March 2025 to 31 August 2025, the Japanese economy continued on a gradual recovery trend due to improvements in employment and income conditions and increased inbound demand. However, the outlook remained uncertain because of concerns about the international economic environment, including US tariff policies, and concerns that continued inflation would slow personal consumption.」

「In the next fiscal year, ending February 2026, the Japanese economy is expected to remain firm, supported by the gradual improvement in personal consumption resulting from higher wages, expanding inbound demand, and improved corporate earnings. However, the business environment remains uncertain due to rising raw material and energy prices, higher prices and interest rates, foreign-exchange volatility, and increasing geopolitical risks.」

「The outlook remains uncertain due to soaring prices for raw materials, fuel and other goods against the backdrop of prolonged geopolitical risks.」

「During the first three months of the fiscal year ending 28 February 2025 (1 March 2024 to 31 May 2024), the economy recovered gradually as the normalization of social and economic activity following the containment of COVID-19 and increased inbound demand from growing numbers of visitors to Japan led to greater human mobility. However, consumers continued to focus increasingly on protecting their standard of living amid soaring food and energy resource prices driven by prolonged geopolitical risks and inflation caused by the yen's depreciation, and the outlook remained uncertain.」

「In the next fiscal year, ending February 2025, the Japanese economy is expected to recover gradually, supported by expanding inbound demand driven by foreign-exchange rates, wage increases by major companies, and the government's economic measures. However, consumers have become increasingly focused on protecting their standard of living amid soaring food and energy resource prices driven by prolonged geopolitical risks and inflation caused by the yen's depreciation, and the outlook remains uncertain.」

「During the first nine months of the fiscal year ending 29 February 2024 (1 March 2023 to 30 November 2023), restrictions on activity ended as COVID-19 subsided, and domestic consumption began to recover gradually, particularly in customer-facing service industries. However, the outlook remained uncertain due to soaring resource prices and inflation driven by heightened geopolitical risks, as well as rising wages caused by labor shortages.」

「During the first six months of the fiscal year ending 29 February 2024 (1 March 2023 to 31 August 2023), restrictions on activity intended to prevent the spread of COVID-19 were eased, and personal consumption showed signs of recovery as social and economic activity normalized. However, soaring resource prices and inflation driven by heightened geopolitical risks continued, and the outlook remained uncertain.」

「During the first three months of the fiscal year ending 29 February 2024 (1 March 2023 to 31 May 2023), restrictions on activity intended to prevent the spread of COVID-19 were eased, and economic conditions began to recover gradually as social and economic activity normalized. However, soaring resource prices and inflation driven by heightened geopolitical risks continued, and the outlook remained uncertain.」

「Against the backdrop of heightened geopolitical risks, soaring resource prices and inflation caused by sharp foreign-exchange fluctuations have further heightened consumers' focus on protecting their standard of living, and the outlook remains uncertain.」

「During the first six months of the fiscal year ending 28 February 2023 (1 March 2022 to 31 August 2022), the Japanese economy showed signs of recovery as economic activity improved with the decline in the risk of severe illness, despite the impact of COVID-19. However, concerns remain about the renewed spread of infections caused by variants. In addition, heightened geopolitical risks arising from increased international tensions, soaring energy and raw material prices, and the impact of rapid inflation caused by the yen's depreciation on personal consumption and consumer behavior have raised concerns, and the outlook remains uncertain.」

「During the first three months of the fiscal year ending 28 February 2023 (1 March 2022 to 31 May 2022), the Japanese economy showed signs of recovery as restrictions on activity were eased due to the higher vaccination rate and economic activity improved as infections declined, despite the continuing impact of COVID-19. However, there is still no clear prospect of containing the disease, and the outlook remains uncertain.」

「Although the economy is expected to gradually recover as measures against COVID-19 advance and effective vaccines become more widely available, the outlook for containing COVID-19 remains unclear, and the uncertain situation is expected to continue.」

「During the first nine months of the fiscal year ended 28 February 2022 (1 March 2021 to 30 November 2021), the Japanese economy remained uncertain. The number of COVID-19 infections, which peaked in August, began to decline in September, the state of emergency was lifted at the end of September, the Kishida administration was inaugurated in October, and the new Omicron variant began spreading globally in November. Due to concerns about the highly transmissible Omicron variant entering Japan, economic activity is expected to continue while monitoring infection trends.」

「Although the state of emergency declared in response to COVID-19 was lifted in March, the number of infections began to rise again in late April due to the emergence of variants, leading to the reissuance of the state of emergency and the implementation of priority preventive measures in major metropolitan areas. While signs of improvement have emerged, including the gradual rollout of vaccinations, mainly among older people, the situation is expected to continue for some time with a balance being maintained between economic activity and containing the spread of infection, and the outlook remains uncertain.」

「Although the economy is expected to gradually recover as measures against COVID-19 advance and effective vaccines become more widely available, the outlook for containing COVID-19 remains uncertain, and the economic environment is expected to remain uncertain.」

「After the state of emergency was lifted in May, personal consumption gradually recovered, supported in part by the effects of measures such as the Special Cash Payment and the Go To Campaign, while efforts were made to contain the spread of COVID-19. However, infections began to spread again in November, and the outlook remains uncertain.」

「During the first six months of the fiscal year ended 28 February 2021 (1 March 2020 to 31 August 2020), the Japanese economy was in an extremely difficult situation due to stagnation in economic activity caused by the spread of COVID-19.」

「However, the economic outlook remains unstable due to US-China trade friction, the UK's departure from the EU, and the impact of the spread of COVID-19 on the economy.」

「During the first nine months of the fiscal year ended 29 February 2020 (1 March 2019 to 30 November 2019), the Japanese economy continued its gradual recovery, supported by improved corporate earnings and employment conditions. However, overseas, uncertainty persisted amid growing concerns about an expansion of US-China trade friction and a slowdown in the global economy.」

「During the first six months of the fiscal year ended 29 February 2020 (1 March 2019 to 31 August 2019), the Japanese economy continued its gradual recovery, supported by improved corporate earnings and employment conditions. However, overseas, uncertainty persisted amid growing concerns about an expansion of US-China trade friction and a slowdown in the global economy.」

「Although the economy continues to recover gradually, supported by improved corporate earnings and employment conditions, uncertainty about the economic outlook is increasing overseas due to the prolonged US-China trade friction, the UK's EU departure issue, and an unstable international political situation.」

「Meanwhile, the economic outlook remains uncertain due to the US-China trade friction, volatility in financial and capital markets, and the impact of a succession of natural disasters.」

「Meanwhile, the economic outlook remains uncertain due to the US-China trade friction, volatility in financial and capital markets, and the impact of a succession of natural disasters.」

「Meanwhile, the economic outlook remains uncertain, partly due to the impact of uncertainty in overseas economies and volatility in financial and capital markets.」

「Meanwhile, the economic outlook remains uncertain, partly due to the impact of uncertainty in overseas economies and volatility in financial and capital markets.」

「During the first nine months of the fiscal year ended 28 February 2018 (1 March 2017 to 30 November 2017), the Japanese economy was on a gradual recovery trend, supported by improved corporate earnings and employment conditions. However, the outlook remained uncertain due to a slowdown in emerging economies, the UK's EU departure issue, developments in the new US administration's policies, and instability in the Korean Peninsula and the Middle East.」

「During the first six months of the fiscal year ended 28 February 2018 (1 March 2017 to 31 August 2017), the Japanese economy was on a gradual recovery trend, supported by improved corporate earnings and employment conditions. However, the outlook remained uncertain due to a slowdown in emerging economies, the UK's EU departure issue, developments in the new US administration's policies, and instability in the Korean Peninsula and the Middle East.」

「During the first three months of the fiscal year ended 28 February 2018 (1 March 2017 to 31 May 2017), the Japanese economy was on a gradual recovery trend, supported by improved corporate earnings and employment conditions. However, the outlook remained uncertain due to concerns about the impact on the Japanese economy of a slowdown in emerging economies, the UK's EU departure issue, and developments in the US economy.」

「However, the outlook for the economy remains uncertain due to risks of a downturn in overseas economies, including a slowdown in emerging economies and declines in resource prices, particularly crude oil, and stock prices, as well as growing concerns that the yen's appreciation trend since the beginning of the year will worsen corporate earnings.」

「During the first nine months of the fiscal year ended 28 February 2017 (1 March 2016 to 30 November 2016), the Japanese economy was on a gradual recovery trend, supported in part by the effects of economic measures and monetary policy implemented by the government and the Bank of Japan, including improved corporate earnings and employment conditions. However, the outlook remained uncertain due to concerns about the impact on the global economy of economic slowdowns in emerging countries, particularly China, and the United Kingdom's decision to leave the EU.」

「During the first six months of the fiscal year ended 28 February 2017 (1 March 2016 to 31 August 2016), the Japanese economy was on a gradual recovery trend, supported in part by the effects of economic measures and monetary policy implemented by the government and the Bank of Japan, including improved corporate earnings and employment conditions. However, the outlook remained uncertain due to concerns about the impact on the global economy of economic slowdowns in emerging countries, particularly China, and the United Kingdom's decision to leave the EU.」

「The yen's movement from depreciation to appreciation, rising gasoline prices due to higher crude oil prices and other factors have further heightened consumers' focus on protecting their standard of living, and the outlook remains uncertain.」