Uncertainty in the Global Economy and an Unclear Outlook

「However, the outlook remains uncertain due to heightened geopolitical risks, including trends in the policies of various countries and the situation in the Middle East, as well as fluctuations in exchange rates and energy prices.」

「However, uncertainty remains, including a decline in the number of Chinese visitors to Japan due to worsening Japan-China relations and higher crude oil prices resulting from heightened tensions in the Middle East that emerged at the end of February.」

「However, uncertainty remains, including a decline in the number of Chinese visitors to Japan due to worsening Japan-China relations and higher crude oil prices resulting from heightened tensions in the Middle East that emerged at the end of February.」

「During the interim accounting period, Japan's economy remained uncertain despite continued gradual improvements in employment and income conditions, due to the impact of the US administration's tariff policies, geopolitical risks in Ukraine and the Middle East, and the prolonged rise in domestic prices.」

「Although a gradual recovery is expected to continue in Japan as employment and income conditions improve and inbound demand increases, the outlook remains unclear amid concerns about the impact on economic activity of surging energy prices and raw material costs and exchange-rate fluctuations.」

「With the outlook for economic activity unclear due to the prolonged situation in Russia and Ukraine and worsening tensions between Israel and Palestine」

「A gradual recovery in economic activity was seen following the transition of COVID-19 to Category 5. However, consumer sentiment remained sluggish in recovering amid higher raw material and energy prices, inflation caused by a worsening labor shortage, and stagnant growth in real wages, and the outlook remained unclear.」

「During the cumulative second quarter, the transition of COVID-19 to Category 5 under the Infectious Diseases Control Law in May 2023 eased restrictions on daily life and social activity, bringing consumption activity toward normalization and indicating a gradual recovery. However, the outlook remained unclear due to sharp exchange-rate fluctuations, the prolonged situation in Ukraine, and higher energy prices, including electricity and gasoline.」

「During the cumulative first quarter, signs of progress were seen in the normalization of social and economic activity and the recovery of inbound demand as restrictions associated with COVID-19 were eased. However, the outlook remained unclear due to surging raw material and energy costs affected by yen depreciation stemming from the Japan-US interest-rate differential and the trade deficit, as well as the prolonged situation in Ukraine and rapid domestic price increases.」

「Against a backdrop of surging raw material and energy prices caused by the prolonged situation in Russia and Ukraine, concerns are spreading about rising inflation and an economic downturn, including rapid yen depreciation in the foreign exchange market amid globally tighter monetary policy, and the outlook remains unclear.」

「The outlook remains unclear due to surging raw material and energy prices resulting from the prolonged situation in Russia and Ukraine, as well as the rapid acceleration of yen depreciation.」

「During the cumulative second quarter, although the impact of the COVID-19 pandemic continued, economic activity was returning to its previous level as changes in lifestyles, the wider availability of vaccines, and the gradual easing of restrictions supported a recovery. However, the prolonged situation in Russia and Ukraine and the surge in energy costs and raw material prices caused by historic yen depreciation are not expected to subside for the time being, and a challenging situation is expected to continue.」

「However, the outlook remains unclear due to heightened international tensions, including Russia's invasion of Ukraine, and historic yen depreciation, which has caused raw material prices and energy prices, particularly crude oil prices, to surge.」

「Furthermore, a challenging operating environment is expected to continue across the industry, including supply-side constraints caused by logistics disruptions, surging raw material and crude oil prices, and downside risks to economic activity arising from the situation in Russia and Ukraine.」

「During the cumulative third quarter, although the lifting of the state of emergency and other measures and the wider availability of vaccines led to a return of human mobility and signs of progress toward normalizing economic and social activity, concerns about a future resurgence of infection could not be dispelled and the outlook remained unclear.」

「During the cumulative second quarter, Japan's economic activity was constrained for an extended period as the state of emergency and priority preventive measures were imposed intermittently across the country as COVID-19 subsided and resurged. Although vaccinations gradually progressed, the spread of the Delta variant made it impossible to foresee when the infection would be contained, and the situation requiring close attention continued.」

「During the cumulative first quarter, economic and social activity remained constrained, including by the declaration of the third state of emergency as COVID-19 spread, and the situation requiring close attention continued.」

「Although various government policies were implemented and signs of a recovery were seen, the timing of the containment of COVID-19 remained unforeseeable, and the situation requiring close attention continued amid further downside risks from the spread of infection.」

「During the cumulative third quarter, the Japanese economy remained in a challenging situation due to the ongoing impact of COVID-19. Although signs of recovery began to emerge as social and economic activity gradually resumed, the nationwide resurgence of COVID-19 this winter again created a challenging situation requiring close attention.」

「During the cumulative second quarter, the Japanese economy remained in a challenging situation due to the global spread of COVID-19. Although economic activity gradually resumed after the state of emergency was lifted, concerns about the spread of COVID-19 remained, and economic activity had not yet recovered.」

「During the cumulative first quarter, the Japanese economy contracted sharply due to restrictions on economic and social activity, including the declaration of a state of emergency as COVID-19 spread. Similar conditions prevailed worldwide, and the outlook remained unclear.」

「Furthermore, since the beginning of 2020, the global spread of COVID-19 has raised concerns not only about impacts from supply-chain disruptions and other factors but also about a deterioration in the global economy as a whole. Although countries have coordinated their measures to prevent the spread of the disease and support their economies, the effects of travel restrictions and other measures are evident, the situation is changing from moment to moment, and caution about the outlook has intensified further.」

「During the cumulative third quarter, the Japanese economy remained unclear in outlook, as private consumption lacked momentum and strength due to unstable international economic conditions arising from the US-China struggle for hegemony, the consumption tax increase, and the impact of repeated natural disasters such as typhoons.」

「During the cumulative second quarter, the Japanese economy remained resilient, albeit with weak growth, supported by solid domestic demand such as private consumption and capital investment. However, the outlook remained unclear amid a slowing global economy, due to the impact of US-China trade friction, growing concerns about the United Kingdom leaving the EU without an agreement, and the prolonged Japan-South Korea dispute.」

「At the same time, the outlook remains unclear, with concerns about a decline in demand following the consumption tax increase, the impact of US-China trade negotiations, and the prolonged Japan-South Korea dispute.」

「Although the Japanese economy faced factors including the impact of successive natural disasters and increased downside risks to economic activity due to unstable political and economic conditions overseas, corporate earnings improved markedly and the economy remained on a gradual recovery path.」

「However, uncertainty in the global economy remains high due to developments in the United States and EU countries, among other factors, raising concerns about the impact on the Japanese economy, and the outlook remains unclear.」