Risk of Downward Pressure on the Domestic Economy from Overseas Political Developments and Financial Market Volatility

「During the current consolidated fiscal year, Japan's economy remained on a moderate recovery trend due to improvements in the employment and income environment and the effects of various policies. Meanwhile, close monitoring remained necessary because of concerns over an economic downturn due to heightened geopolitical risks and developments in US trade policies, as well as the impact of continuing inflation on consumer sentiment.」

「During the current interim consolidated accounting period, Japan's economy showed a moderate recovery against a backdrop of improved income conditions resulting from the effects of various policies. Meanwhile, the risk of an economic downturn increased due to prolonged inflation and the impact of US trade policies, and the need for close monitoring persisted.」

「During the current interim consolidated accounting period, Japan's economy remained uncertain. Although the employment and income environment improved, concerns included a downturn in the global economy due to heightened geopolitical risks and sluggish personal consumption against a backdrop of high prices.」

「Meanwhile, as risks of an economic downturn associated with global monetary tightening and geopolitical risks persisted, changes in domestic financial markets and consumers' growing propensity to economise in response to high prices meant that the outlook remained uncertain.」

「Meanwhile, in addition to the Ukraine issue, new geopolitical risks emerged. The outlook remained uncertain as the yen's depreciation compounded soaring raw material prices, including energy prices.」

「Meanwhile, inflation continued against a backdrop of soaring raw material and energy prices and foreign-exchange volatility resulting from global monetary tightening, and the outlook remained uncertain.」

「The uncertain outlook persisted as the prolonged situation in Ukraine raised concerns over an economic downturn caused by soaring raw material and energy prices and volatility in financial and capital markets.」

「The outlook remained uncertain amid concerns that the renewed spread of infections caused by new variants, together with escalating tensions surrounding the situation in Ukraine, could stagnate economic activity.」

「The outlook remained uncertain amid concerns over the impact of US-China trade tensions and the UK's withdrawal from the EU on the global economy, as well as the impact of the consumption tax increase implemented in October of the previous year on personal consumption and other areas.」

「Meanwhile, the uncertain outlook persisted amid concerns over the impact of developments in trade issues and stagnation in overseas economies.」

「Meanwhile, the uncertain outlook persisted amid concerns over the impact of US trade policies on the global economy and the unstable international situation.」

「Meanwhile, the uncertain outlook persisted amid concerns over the impact of uncertainty in the global economy, volatility in financial and capital markets, and geopolitical risks.」

「Meanwhile, uncertainty surrounding political conditions overseas and developments in financial and capital markets remained high, and the uncertain outlook persisted.」

「During the first 3 quarters of the current consolidated cumulative period, Japan's economy remained on a moderate recovery trend overall. Although the unstable international situation created uncertainty about the outlook, the employment and income environment continued to improve against a backdrop of solid corporate earnings and a recovery in capital investment.」

「However, uncertainty about the outlook has persisted amid concerns over the impact of geopolitical risks and volatility in financial and capital markets.」

「However, the risk remains that political developments in the United States and Europe and volatility in financial markets could weigh on the domestic economy.」