Economic Stagnation and Uncertainty in Overseas Economies

「No impact from the situation in the Middle East as of 2Q」

「During the current consolidated fiscal year, the global economy remained uncertain owing to the impact of multiple sources of uncertainty, including policy developments such as US trade and tariff policy, volatility in capital markets resulting from monetary policy in various countries, and heightened geopolitical risks, including rising tensions in the Middle East.」

「During the first half of the current consolidated fiscal period, there were no material changes in the occurrence of matters among those relating to the business and accounting conditions described in this interim report that could materially affect investors' decisions, or in the business and other risks described in the annual securities report for the previous fiscal year.」

「The Japanese economy has recently shown some stagnation but is recovering moderately. The global economy is also recovering, although some regions remain weak.」

「During the first quarter of the current consolidated fiscal period, the global economy remained uncertain owing to tighter monetary policy in various countries, heightened geopolitical risks from the prolonged Russian invasion of Ukraine and worsening conditions in the Middle East, and the delayed recovery of the Chinese economy. At the same time, the economy was gradually recovering in the near term.」

「During the current consolidated fiscal year, the global economy continued to recover as economic activity resumed after the pandemic. At the same time, concerns arose about a slowdown in the global economy owing to heightened geopolitical risks associated with the prolonged deterioration of the situation in Ukraine, soaring resource prices, and higher interest rates.」

「During the first nine months of the current consolidated fiscal period, the full-scale reopening of economic activity accelerated after COVID-19 was reclassified under the same category as seasonal influenza. However, the outlook remained uncertain owing to the continuing impact of soaring energy and raw-material prices, supply constraints, a weaker yen against the dollar, and volatility in the financial and capital markets. The global economy also remained uncertain as concerns about recession spread across countries against a backdrop of delayed recovery in China, the prolonged Russian invasion of Ukraine, high raw-material and energy costs, and persistent inflation.」

「During the first half of the current consolidated fiscal period, social activity showed signs of normalizing as policy restrictions related to COVID-19 were eased. However, uncertainty about the outlook persisted owing to global inflation, tighter monetary policy in various countries, the prolonged Russian invasion of Ukraine, delays in the recovery of the Chinese economy, and sharp currency movements.」

「During the first quarter of the current consolidated fiscal period, signs of a gradual recovery in social activity emerged as the impact of COVID-19 continued, but the outlook remained uncertain owing to sharp fluctuations in foreign exchange rates and rising prices. The global economy also faced downside risks, including concerns about recession in Europe and the United States resulting from monetary tightening, sharp currency movements, continuing geopolitical risks stemming from the war in Ukraine, and the spread of COVID-19 in China.」

「During the first nine months of the current consolidated fiscal period, the Japanese economy remained extremely unstable as soaring energy and resource prices triggered by Russia's invasion of Ukraine and a rapid depreciation of the yen offset the easing of the COVID-19 Omicron wave. Looking ahead, the impact of a seventh wave of COVID-19 is a concern, while the outlook for Ukraine, financial markets, and foreign exchange rates remains unforeseeable, and conditions are expected to remain confused.」

「However, concerns about the impact of the pandemic have increased since the beginning of 2022 as infections with the Omicron variant spread and priority preventive measures were reapplied. Overseas conditions also remained uncertain owing to factors including the increasingly tense situation in Ukraine, US monetary policy, and developments in the Chinese economy.」

「During the current consolidated fiscal year, the Japanese economy remained in a difficult situation owing to the impact of COVID-19, although signs of improvement emerged as the state of emergency was lifted at the end of September following higher vaccination rates and a decline in new infections. On the other hand, uncertainty persisted owing to concerns about reduced automobile production caused by semiconductor shortages, a slowdown in the Chinese economy, and the renewed spread of COVID-19 toward year-end.」

「During the first nine months of the current consolidated fiscal period, the Japanese economy remained in a difficult situation owing to the impact of COVID-19, although some signs of recovery were seen as vaccinations accelerated and overseas economies improved. However, the spread of variant strains caused infections to rise again in July, and the areas covered by the state of emergency were expanded to 6 prefectures. As the end of the pandemic remained unforeseeable, the outlook for the economy continued to be uncertain.」

「However, uncertainty about the outlook continued owing to concerns about the further spread and prolonged duration of the pandemic, including the issuance of a third state of emergency covering 4 prefectures in April.」

「During the first quarter of the current consolidated fiscal period, the Japanese economy remained in a difficult situation owing to the impact of COVID-19, although signs of a recovery were seen, supported by the effects of various policies and an improvement in overseas economies. However, the outlook remained extremely uncertain owing to factors including the impact of a change in the US administration and the reissuance of a state of emergency in response to rising infection numbers.」

「During the current consolidated fiscal year, the Japanese economy was initially on a moderate recovery track, but deteriorated sharply under the impact of the global spread of COVID-19 and remains in a difficult situation.」

「Looking ahead, economic activity is expected to recover as social and economic activity is gradually stepped up following the lifting of the state of emergency on 25 May, but concerns about a second wave of infections remain, leaving the outlook extremely uncertain.」

「During the first half of the current consolidated fiscal period, the Japanese economy was initially on a moderate recovery track, but economic activity has recently been substantially depressed by the spread of the novel coronavirus, leaving the economy in an extremely difficult situation. Looking ahead, economic activity in Japan and overseas is expected to remain sluggish for the time being because of the pandemic, and downside risks are expected to intensify.」

「However, uncertainty about the outlook has increased owing to political developments and economic uncertainty overseas, including the inward-looking policies of the United States ahead of the presidential election, the impact of the novel coronavirus on the Chinese economy, and the UK's withdrawal from the EU.」

「During the first nine months of the current consolidated fiscal period, the Japanese economy continued to recover moderately, supported by favorable employment and income conditions, personal consumption, and high corporate earnings, despite some weakness in exports and capital investment. However, the outlook remained uncertain owing to factors including US-China trade friction, developments in the Chinese economy, and the impact of the consumption tax increase in October.」

「During the first half of the current consolidated fiscal period, the Japanese economy continued to recover moderately, despite some stagnation in corporate earnings, supported by improving employment and income conditions and a recovery in personal consumption. Overseas economies, however, remained subject to considerable uncertainty, owing to factors including US-China trade friction, the slowdown in the Chinese economy, and the UK's withdrawal from the EU.」

「On the other hand, the outlook remains uncertain, owing to factors including developments in US-China trade relations, concerns about a slowdown in the Chinese economy, and volatility in the financial and capital markets.」

「On the other hand, uncertainty has increased owing to factors including the impact of US-China trade friction and volatility in the financial and capital markets.」

「Overseas economies are also generally on a recovery track, but uncertainty has increased owing to factors including trade friction resulting from the increasingly protectionist nature of US trade policy and volatility in the financial and capital markets.」

「During the first half of the current consolidated fiscal period, the Japanese economy continued to recover moderately, with corporate earnings and employment and income conditions improving and signs of a recovery emerging in personal consumption. Overseas economies also generally remained on a recovery track, although concerns remained regarding the impact of US interest-rate hikes and the outlook for emerging Asian economies.」

「During the first quarter of the current consolidated fiscal period, the Japanese economy remained on a moderate recovery track, with employment conditions and corporate earnings continuing to improve and signs of a recovery emerging in personal consumption. Overseas economies were also generally on a moderate recovery track, although concerns remained regarding US monetary and trade policies, the downside risks facing emerging Asian economies including China, and geopolitical risks in the Middle East and Asia.」

「During the current consolidated fiscal year, the global economy was affected by geopolitical risks, including policy changes following the change of administration in the United States, political tensions in East Asia, and terrorism and immigration issues in Europe. However, in addition to the strong US economy, China, Europe, and Asia generally turned toward recovery in the second half of the fiscal year.」

「During the first nine months of the current consolidated fiscal period, the Japanese economy remained on a moderate recovery track, with corporate earnings continuing to recover amid ongoing improvements in employment and income conditions. On the other hand, the outlook remains uncertain, owing to factors including the impact of normalization of US monetary policy, the outlook for the Chinese and other emerging Asian economies, and the effects of policy uncertainty.」

「During the first half of the current consolidated fiscal period, the Japanese economy remained on a moderate recovery track, as personal consumption and corporate earnings began to recover amid continued improvement in employment and income conditions, supported in part by the effects of various government policies. On the other hand, risks from uncertainty in overseas economies and volatility in the financial and capital markets have increased, owing to geopolitical risks in the Middle East and East Asia and rising nationalism in Europe and the United States.」

「During the first quarter of the current consolidated fiscal period, the Japanese economy remained on a moderate recovery track, with employment and income conditions continuing to improve and signs of a recovery emerging in personal consumption. On the other hand, uncertainty about the outlook has increased, owing to factors including the impact of the new US administration's economic and financial policies and protectionist trade policies.」

「On the other hand, the continued appreciation of the yen has weighed on exports and production, while prices have remained on a downward trend, leaving the economy without a clear sense of momentum. The outlook also remains uncertain, owing to factors including the economic slowdown in emerging economies, particularly China, developments in US monetary policy, and the UK's withdrawal from the EU.」

「Meanwhile, the domestic economy has shown strong signs of stagnation as the yen has appreciated since the beginning of the year and consumer sentiment and corporate business confidence have become increasingly cautious. The outlook remains uncertain, particularly owing to the slowdown in emerging Asian economies, including China, and the United Kingdom’s withdrawal from the EU.」