External-Environment Risks from a Stronger Yen, Falling Share Prices, Weak Personal Consumption and a Slowdown in the Chinese Economy

「There continued to be uncertainties, including the increasingly tense situation in the Middle East, the downturn in the Chinese economy, and persistent inflationary trends. Personal consumption and capital investment both remained lacking in strength.」

「During the consolidated fiscal year ended 31 March 2026 (1 April 2025 to 31 March 2026), Japan's economy continued to face uncertain factors, including the sluggish Chinese economy, persistent inflationary trends, the impact of US tariff policy on the economy and the increasingly tense situation in the Middle East.」

「During the fiscal year under review, from 1 April 2025 to 31 March 2026, the Japanese economy continued to face uncertainties including the downturn in the Chinese economy, persistent inflationary trends, the impact of US tariff policy on the economy, and the increasingly tense situation in the Middle East. Although some weakness was observed in the recovery in personal consumption, capital investment remained firm.」

「During the six-month interim consolidated accounting period ended 30 September 2025 (1 April 2025 to 30 September 2025), Japan's economy continued to face uncertain factors, including the sluggish Chinese economy, persistent inflationary trends and the impact of US tariff policy on the economy. However, personal consumption remained firm, and capital investment also remained solid.」

「Meanwhile, as worldwide inflation, a weaker yen and geopolitical risks continued, rising costs, including materials prices, labor costs and energy prices, weighed on corporate profits. In addition, the Chinese economy's lackluster growth meant that the business environment remained uncertain.」

「Amid worldwide inflation, a weaker yen and the Russia-Ukraine situation, rising costs, including materials prices, labor costs and energy prices, are weighing on corporate profits. In addition, the slowdown in the Chinese economy means that a challenging operating environment may continue.」

「Meanwhile, the real economy has been significantly affected by worldwide cost increases, including declines in demand for information and communications equipment and other products due to weaker global demand for personal computers and smartphones, tight labor markets, persistently high energy prices, surging resource and materials prices, and higher logistics costs.」

「While restrictions on economic activity due to COVID-19 were increasingly eased, the economic outlook became even more uncertain due to surging resource and energy prices resulting from the prolonged situation in Ukraine, rapid price increases caused by substantial foreign-exchange volatility, accelerating inflation in countries around the world, and concerns about higher interest rates resulting from monetary tightening.」

「Although restrictions on activities were eased, the effects of COVID-19 remained. The economic outlook continued to be uncertain amid rising resource and energy prices resulting from the prolonged situation in Ukraine and soaring prices caused by the sharp depreciation of the yen.」

「The economic outlook remained uncertain due to rising resource and energy prices resulting from the prolonged situation in Ukraine and soaring prices caused by the sharp depreciation of the yen.」

「During the three-month cumulative consolidated period ended 30 June 2022 (1 April 2022 to 30 June 2022), Japan's economy was moving toward normalization as the number of COVID-19 cases declined, but the decline had leveled off and there was still no prospect of the pandemic subsiding. In addition to the prolonged global semiconductor shortage and a slowdown in the Chinese economy resulting from city lockdowns in China, energy and resource prices surged due to the geopolitical risk of Russia's invasion of Ukraine, while a sharp recent increase in COVID-19 cases made the outlook even more uncertain.」

「Concerns about the spread of a new COVID-19 variant persisted, while the economic outlook remained uncertain due to the prolonged global semiconductor shortage and concerns about a slowdown in the Chinese economy.」

「Overseas economies recovered on progress in COVID-19 vaccinations, and exports and production were trending toward recovery. However, domestic vaccination was not progressing, renewed spread of COVID-19 due to variants was a concern, and the economic outlook remained uncertain due to a global semiconductor shortage and continuing US-China tensions.」

「As winter began, the renewed spread of the COVID-19 pandemic exceeded expectations. In Japan, a state of emergency was reissued, while vaccination also failed to progress, leaving no prospect of the pandemic subsiding and the economic outlook still uncertain.」

「However, as the winter season began, the COVID-19 pandemic flared up again and conditions arose in which Japan reissued a state of emergency. Since there was still no prospect of the pandemic subsiding, the economic outlook remained uncertain.」

「Economic activity gradually resumed after the first wave of the COVID-19 pandemic peaked, but the pace of recovery was slow. Concerns also arose about renewed spread of the novel coronavirus as economic activity resumed, and there was still no clear prospect of the pandemic subsiding, leaving the economic outlook uncertain.」

「Even at this stage, there was no clear prospect of the COVID-19 pandemic subsiding, and concerns remained about further waves of infection, with the economic outlook continuing to be uncertain.」

「In 2020, the global spread of the novel coronavirus (hereinafter, the COVID-19 pandemic) caused extreme disruption and a slowdown in economic activity in countries around the world. In Japan as well, exports and production stagnated, while a mood of restraint spread across economic activity itself due to the pandemic.」

「The economic outlook remained uncertain amid concerns about the risk of a downturn following the consumption tax increase, in addition to unsettled weather, including typhoons and torrential rain.」

「The slowdown in China's economy became more pronounced as no end to the US-China trade war was in sight, while overseas economies stagnated due to worsening international political conditions, including increasing instability in the Middle East. Domestically, exports and production weakened from the latter half of the previous fiscal year, while typhoons, torrential rain and continued labor shortages weighed on corporate earnings, and the economic outlook remained uncertain.」

「During the three-month cumulative consolidated period ended 30 June 2019 (1 April 2019 to 30 June 2019), Japan's economy remained uncertain as overseas economies stagnated amid delays in the recovery of the Chinese economy due to the lack of a clear path toward an end to the US-China trade war, as well as worsening international political conditions, including the increasingly tense situation in Iran. Domestically, exports and production declined from the latter half of the previous fiscal year, while worsening labor shortages and the resulting increase in labor costs weighed on corporate earnings.」

「The economic outlook became unpredictable as the prolonged US-China trade war slowed the Chinese economy and overseas economies stagnated due to worsening international political conditions, including in Europe. Domestically, exports and production declined from the latter half of the second quarter, while worsening labor shortages and the resulting increase in labor costs weighed on corporate earnings.」

「During the nine-month cumulative consolidated period ended 31 December 2018 (1 April 2018 to 31 December 2018), Japan's economy showed signs of recovery from the stagnation caused by a succession of natural disasters in the second quarter, supported by growth in exports, capital investment and personal consumption. However, the economic outlook remained uncertain amid the downturn in the economies of related countries resulting from the US-China trade war, the emergence of US political risk, the UK's issue of leaving the EU, instability surrounding North Korea and the Middle East, and, domestically, worsening labor shortages and the resulting increase in labor costs weighing on corporate earnings.」

「The economic outlook remained uncertain, with concerns over a stronger yen and weaker dollar resulting from the emergence of US political risk and intensifying trade friction caused by US protectionism, instability surrounding North Korea and the Middle East, and, domestically, worsening labor shortages and the resulting increase in labor costs weighing on corporate earnings.」

「The economic outlook remained uncertain as the US administration's increasing protectionism brought trade friction with China and the EU countries to the fore, leaving the situation unpredictable, while domestically, worsening labor shortages and the resulting increase in labor costs also raised concerns about pressure on corporate earnings.」

「As the fourth quarter began, the outlook for the economy remained increasingly uncertain due to the US administration's growing protectionism in trade policy, the strengthening yen and weakening dollar, instability surrounding North Korea and the Middle East, and, domestically, sluggish personal consumption amid worsening labor shortages and slower wage growth.」

「The economic outlook remains uncertain due to the lack of clarity surrounding policy management by the US administration, escalating tensions on the Korean Peninsula, increasing instability in the Middle East, foreign-exchange fluctuation risks, increasingly severe labor shortages in Japan and continued weakness in personal consumption.」

「The economic outlook remains uncertain due to uncertainty over policy management following the inauguration of the new US administration, instability in overseas political conditions including the situation on the Korean Peninsula, foreign-exchange fluctuation risks, the emergence of labor shortages in Japan and sluggish personal consumption.」

「The economic outlook remains uncertain due to uncertainty over policy management following the inauguration of the new US administration, instability in overseas political conditions, foreign-exchange fluctuation risks and the emergence of labor shortages in Japan.」

「The economic outlook is uncertain due to uncertainty over policy management following the inauguration of the new US administration, the rise of protectionism in various countries, the risk of sharp foreign-exchange fluctuations and the emergence of labor shortages in Japan.」

「However, the Chinese economy continues to undergo structural adjustment, the European economy is being affected by the United Kingdom’s withdrawal from the EU, and uncertainty over policies following the inauguration of the new US administration is also a concern, making the economic outlook increasingly uncertain.」

「The US economic recovery also lacks strength, the Chinese economy continues to undergo structural adjustment, and the European economy is being affected by the United Kingdom’s withdrawal from the EU, making the outlook for the global economy increasingly uncertain.」

「Since the beginning of the year, the yen has continued to strengthen and share prices have continued to fall, putting downward pressure on corporate earnings and causing weak personal consumption. In addition, the fading of inbound demand has kept conditions stagnant.」