Uncertainty surrounding domestic and overseas economic conditions and trade policy

「In the global economy, uncertainty surrounding the situation in the Middle East remains high. Risks have emerged that disruptions to navigation through the Strait of Hormuz could keep crude-oil and fuel prices elevated and that supply constraints on component procurement could weigh on production activity in Japan and overseas. In addition, the impact of U.S. trade policy on supply chains remains a concern, further intensifying worries about a global slowdown and uncertainty surrounding corporate and consumer sentiment. The situation continues to require close monitoring.」

「There are serious concerns that consumption will stagnate due to soaring crude oil prices following escalating tensions in the Middle East and the resulting impact of logistics disruptions, while the economy may enter a downturn as corporate performance deteriorates. Overseas economies also face heightened concern about downside risks, including accelerating global inflation stemming from the situation in the Middle East and uncertainty surrounding U.S. trade policy.」

「In the global economy, risks from U.S. trade policy affecting trade volumes and supply chains have become apparent, and concerns about a slowdown in the global economy have intensified.」

「Meanwhile, personal consumption has stagnated, with real wages continuing to decline due in part to higher food, raw-material and energy prices. In the global economy, risks that US trade policy will affect trade volumes and supply chains have become apparent, while concerns about a global slowdown and uncertainty surrounding corporate and consumer sentiment have intensified. The situation therefore continues to require close attention.」