Downside Risks to Overseas Economies, Geopolitical Risks and Sharp Market Volatility

「During the interim consolidated accounting period under review, the Japanese economy maintained a moderate recovery trend, with personal consumption remaining generally firm as capital investment continued against a backdrop of solid corporate earnings and the employment and income environment improved. However, concerns remained over prolonged high prices and cost burdens, as well as uncertainty regarding monetary policy and geopolitical risks.」

「During the interim consolidated accounting period under review, the Japanese economy followed a moderate recovery trend, with capital investment and personal consumption showing signs of recovery as the employment and income environment improved. However, the economic outlook remained uncertain due to continued high prices, including energy prices, rising geopolitical risks, and the effects of U.S. trade policies on various countries.」

「Although improvements in the income environment are expected to continue against a backdrop of strong corporate earnings, and the economy is expected to follow a moderate recovery trend led by personal consumption, with the Bank of Japan's economic measures supporting the economy, uncertainty remains over the effects of changes in various policies following a change of administration in the United States on the global economy, and the situation must continue to be monitored closely.」

「Meanwhile, the outlook for economic conditions remained uncertain due to the still-unstable international situation, continued high energy prices, sharp foreign-exchange fluctuations, and rising prices.」

「During the cumulative first quarter under review, the normalization of social and economic activity following the end of the COVID-19 pandemic progressed further, and the economy followed a moderate recovery trend, with improvements in the employment and income environment. Meanwhile, raw material prices, including energy prices, continued to rise, and geopolitical risks around the world emerged, leaving the outlook for economic conditions uncertain.」

「During the cumulative third quarter under review, the Japanese economy showed signs of recovery as economic activity and personal consumption normalized following the removal of activity restrictions and the easing of entry restrictions. However, monetary tightening by central banks and soaring resource prices have been prolonged, leaving the outlook uncertain.」

「During the cumulative second quarter under review, the Japanese economy showed signs of recovery as personal consumption and economic activity gradually normalized following the reclassification of COVID-19 as a Class 5 disease. However, monetary tightening by central banks and soaring resource prices persisted, leaving the outlook uncertain.」

「During the cumulative third quarter under review, the Japanese economy showed signs of recovery, with personal consumption recovering and the employment and income environment improving against a backdrop of eased restrictions on activities related to COVID-19. However, concerns over higher interest rates due to global monetary tightening, rapid foreign-exchange fluctuations, and inflation caused by soaring energy and raw material prices persisted, leaving the outlook for the overall economy uncertain.」

「However, inflation continued to advance as raw material and energy prices soared, while rapid foreign-exchange fluctuations accompanied the shift in monetary policies by central banks. Together with the renewed spread of COVID-19, these developments left the outlook uncertain.」

「However, in addition to soaring crude oil and other resource prices, the Ukraine crisis brought geopolitical risks to the fore, raising concerns about further inflation and a shift away from accommodative monetary policy and increasing uncertainty over the outlook.」

「Looking ahead, we expect uncertainty over the economic outlook to increase due to concerns about the effects of central banks shifting their policies toward interest-rate hike cycles in response to inflationary pressure, as well as supply-chain disruptions caused by a renewed spread of COVID-19.」

「If economic activity stagnates, including as a result of another increase in COVID-19 cases, the Company's business activities could be affected, and the Company will continue to monitor the situation closely.」

「During the consolidated fiscal year under review, the Japanese economy remained in a difficult situation due to the spread of COVID-19 and concerns over its prolonged impact, including sluggish personal consumption and a rise in unemployment. Although personal consumption and corporate economic activity gradually showed signs of recovery, partly due to the effects of various policies, the spread of the infection showed no signs of ending, and uncertainty over the outlook for domestic and overseas economies persisted.」

「During the cumulative third quarter under review, the Japanese economy remained in a difficult situation due to the spread of COVID-19 and concerns over its prolonged impact. Although signs of a recovery in personal consumption and corporate production emerged, partly due to the effects of various policies, the spread of the infection showed no signs of ending, and uncertainty over the outlook for domestic and overseas economies persisted.」

「Meanwhile, uncertainty in overseas economies, including developments in U.S. and Chinese trade policies and negotiations concerning the United Kingdom's withdrawal from the EU, made the economic outlook uncertain and left concerns over various economic activities.」

「Meanwhile, uncertainty in overseas economies, including developments in U.S. and Chinese trade policies and negotiations concerning the United Kingdom's withdrawal from the EU, persisted, leaving the economic outlook uncertain.」

「Meanwhile, uncertainty in overseas economies increased further due to developments in U.S. and Chinese trade policies and negotiations concerning the United Kingdom's withdrawal from the EU, leaving the economic outlook uncertain.」

「Meanwhile, overseas economies remained subject to uncertainty, including developments in U.S. monetary and trade policies and the outlook for the Chinese economy, leaving the economic outlook uncertain.」

「Meanwhile, geopolitical risks, including trade friction, persisted in the global economy, increasing concerns about an economic slowdown.」

「Meanwhile, geopolitical risks, including trade friction and heightened tensions in the Middle East, persisted in the global economy, increasing uncertainty over the outlook.」

「However, despite the optimistic view arising from improvements in the employment environment, numerous uncertainties remain, including stagnant private consumption, trade friction resulting from protectionist policies, and volatility in financial and capital markets. The economic outlook therefore remains uncertain.」

「Meanwhile, concerns arose over the effects of rising global protectionism, higher crude oil prices and geopolitical risks, increasing uncertainty in overseas economies.」

「Meanwhile, although the U.S. economy continued to expand, geopolitical risks on the Korean Peninsula and in European countries remained a concern, and uncertainty over the outlook persisted.」

「During the cumulative first six months of the current consolidated fiscal year, Japan's economy followed a moderate recovery trend. Although employment conditions improved against a backdrop of solid corporate earnings, the recovery in personal consumption remained sluggish.」

「However, geopolitical risks in various parts of the world increased uncertainty over the expansion of the global economy.」

「During the cumulative first nine months of the current consolidated fiscal year, Japan's economy remained highly uncertain, with concerns about weaker earnings at export-related companies as the yen appreciated and demand contracted against a backdrop of sluggish global economic growth. Improvements in corporate capital investment and consumer sentiment were gradual.」

「Downside risks to overseas economies, particularly China, and geopolitical risks in Europe became apparent, while sharp market volatility emerged, including falling resource prices, lower share prices and yen appreciation, increasing uncertainty over the economic outlook.」