Geopolitical risks arising from the situation in Ukraine and inflation concerns

「海外における地政学的リスクの影響などもあり、依然として先行き不透明な状況が続いております。」

「Japan's economy is expected to remain on a gradual recovery path, supported by improvements in employment and income conditions and expanding inbound demand. However, uncertainty is expected to persist due to elevated resource and energy prices, the impact of higher prices on consumer sentiment, foreign-exchange fluctuations and prolonged geopolitical risks.」

「Although Japan's economy continued on a gradual recovery path during the interim consolidated accounting period, downside risks to the economy due to rising geopolitical risks and the impact of US trade policy, as well as continued soaring energy and raw-material prices, remain.」

「During the consolidated fiscal year, Japan's economy showed a gradual recovery driven by increased inbound consumption and wage increases. However, real wages were negative due to higher international raw-material prices and price increases resulting from higher import costs, and restrained consumer spending has continued. In addition, geopolitical risks remain elevated amid the prolonged Russian invasion of Ukraine and tensions in the Middle East, while the long-term slowdown of the Chinese economy and heightened policy risks in various countries following the change of administration in the United States have added to the uncertainty surrounding personal consumption.」

「Meanwhile, future personal consumption remains difficult to predict amid the effects of rising resource and energy prices due to the protracted situation in Ukraine, concerns about the outlook for the Chinese economy, downside risks to the domestic and overseas economies, developments in the Middle East and volatility in financial and capital markets, as well as growing concerns about protecting household finances in an uncertain outlook.」

「Meanwhile, future personal consumption remains difficult to predict amid the effects of rising resource and energy prices due to the protracted situation in Ukraine, concerns about the outlook for the Chinese economy, downside risks to the domestic and overseas economies, developments in the Middle East and volatility in financial and capital markets, as well as growing concerns about protecting household finances in an uncertain outlook.」

「Meanwhile, Russia's invasion of Ukraine, which began in February 2022, has become protracted, while global resource and energy prices have risen and real wages have remained negative as wage growth has failed to keep pace with price increases caused by the weaker yen. In addition, the intensifying conflict between Israel and Palestine is affecting economic activity, and growing concerns about protecting household finances amid an uncertain outlook mean that future personal consumption remains difficult to predict.」

「While Japan's economy has been experiencing a gradual recovery, the Russian invasion of Ukraine, which began in February 2022, has become protracted, and the impact on economic activity and uncertainty over the outlook continues amid globally higher resource and energy prices, inflation and rising interest rates. In addition, real wages have continued to decline in real terms because wage growth has failed to keep pace with price increases, and the outlook remains uncertain due to the risk of a slowdown in personal consumption as people become increasingly focused on protecting their livelihoods.」

「The economic outlook remains uncertain due to the impact of higher resource and energy prices associated with the prolonged situation in Ukraine, inflation resulting from yen depreciation and other factors.」

「However, in addition to the rapid spread of COVID-19 infections in July 2022, corresponding to the seventh wave, the outlook for the economy has become more uncertain than before due to higher resource and energy prices associated with the situation in Ukraine, inflation resulting from the rapid depreciation of the yen, and global monetary tightening.」

「However, the domestic economic outlook has become increasingly uncertain due to the impact of soaring raw-material prices associated with the geopolitical risks arising from the situation in Ukraine, further inflation concerns and other factors, and the effects of weaker consumer sentiment continue to this day.」

「With regard to the situation in Ukraine, we are deeply concerned and hope for an early peaceful resolution, while also needing to closely monitor the impact of geopolitical risks on the global economy.」