Exchange rate fluctuations caused by the slowdown in China and emerging economies and the UK's withdrawal from the EU

「During the interim consolidated fiscal year from 1 October 2025 to 31 March 2026, Japan's economy maintained a moderate recovery trend, but sentiment deteriorated amid uncertainty about the outlook due to surging crude oil prices caused by escalating tensions in the Middle East, the weaker yen and the resulting increase in fuel prices. Uncertainty surrounding the Middle East and Japan-China relations continued, and uncertainty in the global economy, including Japan's economy, increased.」

「Tuna exports to the United States declined in volume due to the impact of U.S. tariffs, resulting in lower revenue and lower profit, with outcomes varying by region and product category.」

「During the interim consolidated fiscal year from 1 October 2024 to 31 March 2025, Japan's economy remained on a moderate recovery trend, but the outlook continued to be opaque due to soaring raw material prices, higher labor and logistics costs, growing consumer thrift in response to price increases and developments in U.S. policy.」

「During the interim consolidated fiscal year from 1 October 2024 to 31 March 2025, Japan's economy remained on a moderate recovery trend, but the outlook continued to be opaque due to soaring raw material prices, higher labor and logistics costs, growing consumer thrift in response to price increases and developments in U.S. policy.」

「As the prolonged impact of COVID-19 subsided, the economy showed signs of a moderate recovery, including the Nikkei 225 exceeding its pre-Heisei-bubble peak. However, the economic environment remained opaque amid concerns over downside risks such as rising prices caused by higher import prices resulting from the weaker yen, the lifting of the zero-interest-rate policy and volatility in financial markets.」

「During the cumulative first quarter of the fiscal year from 1 October 2023 to 31 December 2023, Japan's economy moved toward the normalization of social and economic activity as restrictions were eased following the reclassification of COVID-19. However, the outlook remained opaque due to economic stagnation caused by global monetary tightening, the prolonged Russian invasion of Ukraine and escalating tensions in the Middle East.」

「During the fiscal year from 1 October 2022 to 30 September 2023, Japan's economy showed signs of the normalization of social and economic activity, including a gradual recovery in domestic demand and inbound tourism. However, international uncertainty, the yen's depreciation and rising prices continued, leaving the economic outlook opaque.」

「During the cumulative third quarter of the fiscal year from 1 October 2022 to 30 June 2023, Japan's economy saw tourism, food service and other sectors drive the recovery in personal consumption as economic activity normalized following the easing of COVID-19 measures. However, concerns remained over various impacts on prices caused by the worsening labor shortage, higher prices due to fluctuations in resource prices and foreign exchange rates, and surging labor costs, and society as a whole continued to face an opaque outlook.」

「During the cumulative second quarter of the fiscal year from 1 October 2022 to 31 March 2023, Japan's economy showed signs of a moderate recovery as social and economic activity moved toward normalization amid the transition to a new phase of living with COVID-19. However, interest rates and prices continued to rise, and the outlook was expected to remain opaque.」

「During the cumulative first quarter of the fiscal year from 1 October 2022 to 31 December 2022, Japan's economy showed signs of recovery in economic activity as restrictions were eased, but remained opaque due to higher resource prices caused by geopolitical risks and the impact of foreign exchange movements.」

「The business environment surrounding the Group remains opaque due to the continued depreciation of the yen, higher electricity costs caused by soaring energy prices and the prolonged situation in Ukraine.」

「During the cumulative third quarter of the fiscal year from 1 October 2021 to 30 June 2022, Japan's economy showed signs of normalizing economic activity as the number of COVID-19 cases declined. However, close attention was required to downside risks to the economy, including the recent renewed spread of COVID-19, the impact of restrictions on economic activity in China, the prolonged situation in Ukraine, higher raw material and energy prices, and fluctuations in foreign exchange and financial and capital markets.」

「During the cumulative second quarter of the fiscal year from 1 October 2021 to 31 March 2022, Japan's economy again faced an opaque outlook for economic activity. This came amid concerns over a global economic slowdown caused by the reduction of monetary easing by developed countries, including the United States, and rising resource prices due to major oil-producing countries refraining from increasing production, compounded by the detection of the Omicron variant of COVID-19 and the escalating situation in Ukraine.」

「During the cumulative first quarter of the fiscal year from 1 October 2021 to 31 December 2021, Japan's economy remained in an opaque situation. Although concerns over a renewed spread of COVID-19 caused by variants remained amid the continuing impact of the pandemic, overseas economies also continued to face downside risks as infections caused by variants resurged in countries around the world, while global crude oil prices surged and supply constraints persisted.」

「Although vaccinations progressed mainly in developed countries overseas, some countries saw a renewed increase in cases caused by variants, while higher crude oil prices and supply constraints added to the factors weighing on the economy, leaving the outlook opaque.」

「During the cumulative third quarter of the fiscal year from 1 October 2020 to 30 June 2021, Japan's economy remained in a severe situation under the impact of COVID-19. Overseas, vaccinations progressed mainly in developed countries, but the outlook for the economy remained opaque amid a renewed increase in cases caused by highly transmissible variants.」

「Although COVID-19 vaccinations began in countries overseas, the outlook for the economy remains opaque amid the possibility of a renewed spread caused by new variants.」

「During the cumulative first quarter of the fiscal year from 1 October 2020 to 31 December 2020, Japan's economy remained in a severe situation due to the spread of COVID-19. Overseas, the prolonged U.S.-China confrontation and the renewed spread of COVID-19 led to the reimposition of lockdowns and stay-at-home orders in major cities, resulting in a severe global impact.」

「During the cumulative third quarter of the fiscal year, Japan's economy deteriorated sharply due to requests for companies to suspend operations and calls for people to refrain from outings involving travel outside their prefectures, in response to the impact of COVID-19. Overseas, the economy also slowed sharply as lockdowns and stay-at-home orders were imposed in major cities in countries around the world.」

「Overseas as well, the end of the infectious disease was not yet in sight, and opaque conditions continued amid concerns over a knock-on slowdown in the economy.」

「Overseas, opaque conditions continued, including worsening U.S.-China trade friction, a slowdown in the Chinese economy and rising geopolitical risks centered on the Middle East and East Asia.」

「During the fiscal year from 1 October 2018 to 30 September 2019, Japan's economy was on a moderate recovery trend as the employment and income environment continued to improve. Overseas, however, concerns remained over the impact of uncertain economic conditions, including escalating U.S.-China trade friction, worsening conditions in the Middle East and the issue of the United Kingdom's withdrawal from the EU.」

「During the cumulative third quarter of the fiscal year, Japan's economy continued on a moderate recovery trend, despite the impact of the slowdown in overseas economies on exports and manufacturing. This was supported by improvements in the employment and income environment and solid corporate earnings. However, conditions continued that could lead to a deterioration in corporate sentiment, including uncertainty in the Chinese economy associated with the prolonged U.S.-China trade friction and the issue of the United Kingdom's withdrawal from the EU, leaving the outlook opaque.」

「During the cumulative second quarter of the fiscal year, Japan's economy continued on a moderate recovery trend. Although external demand remained weak under the impact of the slowdown in the global economy, domestic demand, including personal consumption and capital investment, remained firm. However, exports began to decline in 2019, raising concerns over an economic downturn. The global economy gradually showed increasing signs of slowing amid opaque conditions, including U.S.-China trade friction and the issue of the United Kingdom's withdrawal from the EU.」

「Although personal consumption is showing signs of recovery, there is a risk that the global economy generally could weaken if external factors, including U.S.-China trade friction, increase.」

「However, concerns remain that an escalation of U.S.-China trade friction could weigh on the global economy by increasing uncertainty about the outlook.」

「However, tensions in the global economy caused by a trade war originating in the United States have intensified, raising concerns over medium- to long-term downside risks to the economy.」

「However, developments in U.S. protectionist policies and the continued appreciation of the yen are a concern as risks that could weigh on Japan's economy going forward.」

「Although the global economy is also on a recovery trend, concerns over geopolitical risks have highlighted uncertainty about the economic outlook and remain a destabilizing factor going forward.」

「Although concerns remain over uncertainty in overseas political and economic conditions, Japan's economy has continued on a moderate recovery trend, supported by improvements in corporate earnings and the employment environment,」

「The global economy still contains underlying destabilizing factors, including concerns over the impact of policy uncertainty under the new U.S. administration and geopolitical risks arising around the world.」

「The global economy contains underlying destabilizing factors, including concerns over the impact of policy uncertainty under the new U.S. administration and geopolitical risks arising around the world.」

「However, concerns remained about the impact of a slowdown in emerging-market economies and policy uncertainty under the new U.S. administration, leaving potential factors that could undermine the domestic economy and continued uncertainty over the outlook.」

「Factors with the potential to weaken Japan's economy remained, including concerns about a slowdown in emerging-market economies, beginning with China, the UK's EU withdrawal issue and uncertainties in overseas economies such as the situation in the Middle East. The outlook therefore remained uncertain.」

「However, the global economy remained clouded by uncertainty, including the slowdown in China's economy, downside risks in emerging-market economies and sharp exchange-rate volatility following the UK's decision to leave the EU. Concerns remained about the potential impact on the domestic economy.」