Risk of an Economic Downturn Due to Supply-Side Constraints and Raw Material Prices

「Japan's economy during the interim consolidated accounting period was expected to undergo a gradual recovery, supported by improvements in employment and income conditions and the effects of various policies. However, concerns over the impact of the situation in the Middle East, natural disasters and fluctuations in financial and capital markets have left the outlook uncertain.」

「During the consolidated fiscal year under review, a moderate recovery in Japan's economy is expected to continue, supported by improvements in the employment and income environment and the effects of various policies, but the outlook remains uncertain due to concerns over the impact of conditions in the Middle East, developments surrounding US trade policy, and the effects of volatility in financial and capital markets.」

「We continually face the risk that geopolitical risks, such as overseas conflicts, and financial and foreign-exchange market fluctuations triggered by tariff issues in various countries may affect the performance of client companies and consequently lead to sharp cuts in advertising and event budgets.」

「In a global environment in which companies are heavily affected, wars continue in various regions and geopolitical uncertainty persists. In addition, issues such as U.S. tariffs are beginning to affect various companies through financial markets, foreign exchange and selling prices, and it is necessary to closely monitor the impact on companies and the Japanese economy.」

「However, Russia's invasion of Ukraine has continued for more than 2 years, and issues involving Israel and neighboring countries and disruptions to traffic through the Suez Canal have also affected the global economy in various ways. In addition, it is necessary to closely monitor the impact on global companies and the Japanese economy of high prices, surging energy prices, fluctuations in the Chinese economy and foreign exchange rates.」

「During the cumulative second quarter of the consolidated fiscal year under review, a moderate recovery in Japan's economy is expected to continue, partly as a result of various policies, but the outlook remains uncertain due to concerns over the effects of global monetary tightening, the risk that a downturn in overseas economies could depress Japan's economy, rising prices, and the effects of volatility in financial and capital markets.」

「As global monetary tightening and other factors continue, concerns remain about the risk of downturns in overseas economies, rising prices and the impact of volatility in the capital markets, and the outlook continues to be uncertain.」

「However, Russia's invasion of Ukraine has continued for more than 1 year, affecting the global economy in various ways. In addition, it is necessary to closely monitor the impact on global companies and the Japanese economy of volatility in the financial and capital markets caused by high prices, surging energy prices and financial instability among banks in the United States and Europe.」

「During the cumulative third-quarter period, Japan's economy was expected to recover, supported in part by the effects of various policies. However, as global monetary tightening and other factors continue, concerns remain about the risk that a downturn in overseas economies could weigh on Japan's economy, as well as the impact of rising prices, supply constraints and volatility in the financial and capital markets and concerns about infection trends in China, and the outlook continues to be uncertain.」

「During the cumulative second-quarter period, Japan's economy was expected to recover, supported in part by the effects of various policies. However, as global monetary tightening and other factors continue, concerns remain about the risk that a downturn in overseas economies could weigh on Japan's economy, as well as the impact of rising prices, supply constraints and volatility in the financial and capital markets, and the outlook continues to be uncertain.」

「During the cumulative first-quarter period, Japan's economy was expected to recover, supported in part by the effects of various policies as economic and social activity normalized. However, concerns about the prolonged situation in Ukraine, rising raw material prices, supply constraints and the impact of volatility in the capital markets remain, and the outlook continues to be uncertain.」

「While difficult conditions caused by COVID-19 persist, some weakness is evident. Although the economy is expected to recover, supported by the effects of various policies and improvements in overseas economies, downside risks from rising raw material prices, volatility in the financial and capital markets, and supply constraints remain, and the outlook continues to be uncertain.」

「There are concerns about downside risks arising from supply constraints and trends in raw material prices, as well as the impact of infections, including variant strains, on domestic and overseas economies and the impact of volatility in the capital markets, and the outlook therefore remains uncertain.」