Economic Uncertainty Driven by Emerging-Market Slowdown and the UK's Withdrawal from the EU

「During the interim consolidated fiscal period, Japan's economy was gradually recovering against a backdrop of improving employment and income conditions. However, uncertainty over the outlook continued due to persistent global inflation, US trade policy, soaring resource and energy prices, the prolonged trend toward yen depreciation, and the emergence of geopolitical risks, including intensifying tensions in the Middle East.」

「During the interim consolidated fiscal period, Japan's economy was gradually recovering as corporate earnings and employment conditions continued to improve. However, severe conditions continued due to rising consumer prices, US trade policy, volatility in financial and capital markets, and soaring resource and energy prices.」

「Rising consumer prices, the prolonged situation in Ukraine, intensifying tensions in the Middle East, volatility in financial and capital markets as monetary tightening advanced globally, the entrenched trend toward yen depreciation, and soaring resource and energy prices continued to create severe conditions.」

「During the interim consolidated fiscal period, Japan's economy was gradually recovering as corporate earnings and employment conditions continued to improve. However, severe conditions continued due to rising consumer prices, the prolonged situation in Ukraine, intensifying tensions in the Middle East, volatility in financial and capital markets as monetary tightening advanced globally, the entrenched trend toward yen depreciation, and soaring resource and energy prices.」

「During the consolidated fiscal year, Japan's economy remained on a moderate recovery trend under living with COVID-19. However, severe conditions continued due to the prolonged intensification of tensions surrounding Ukraine, the situation in the Middle East, volatility in financial and capital markets as monetary tightening advanced globally, the entrenched trend toward yen depreciation, and soaring resource and energy prices.」

「During the cumulative third quarter of the fiscal year, Japan's economy remained on a moderate recovery trend as it transitioned to living with COVID-19. However, uncertainty over the future economy increased due to concerns that the confused situation in Ukraine and the impact of prolonged yen depreciation would cause resource and energy prices to rise, increase the burden on households through higher prices, and raise corporate costs and reduce competitiveness.」

「During the cumulative second quarter of the fiscal year, Japan's economy was gradually recovering as the transition to living with COVID-19 accelerated, although close attention remained necessary to the prolonged confusion surrounding Ukraine, the entrenched trend toward yen depreciation, soaring resource and energy prices, and rising prices.」

「During the cumulative first quarter of the fiscal year, Japan's economy was gradually recovering as the transition to a new phase of living with COVID-19 progressed, supported in part by the effects of various policies. However, severe conditions continued due to rising consumer prices, the prolonged intensification of tensions surrounding Ukraine, the continued trend toward yen depreciation as monetary tightening advanced globally, and soaring resource and energy prices.」

「During the cumulative third quarter of the fiscal year, Japan's economy was expected to recover as social and economic activity moved toward normalization, supported in part by the effects of various policies. However, severe conditions continued due to the prolonged intensification of tensions surrounding Ukraine, volatility in financial and capital markets as monetary tightening advanced globally, the recent rapid depreciation of the yen, and soaring resource and energy prices.」

「During the cumulative first quarter of the fiscal year, Japan's economy was gradually returning to normal as efforts advanced to balance COVID-19 control measures with social and economic activity. However, severe conditions continued due to the resurgence of COVID-19 caused by a new variant, intensifying tensions surrounding Ukraine, and soaring resource prices resulting from the rapid depreciation of the yen.」

「In 2021, more countries were easing entry restrictions and restrictions on activities after entry in response to the wider availability of COVID-19 vaccinations. However, in November, following the emergence of a new variant, Omicron, multiple countries and regions moved to tighten entry restrictions and post-entry activity restrictions again.」

「During the cumulative third quarter of the fiscal year, the global economy remained uncertain due to factors including the spread of highly transmissible variants, despite progress in COVID-19 vaccination programs in countries, particularly developed economies. In Japan, economic activity also remained sluggish and conditions were severe due to repeated declarations of a state of emergency and the issuance of priority preventive measures to prevent the spread of the disease.」

「The number of Japanese outbound travelers, which affects the performance of the Group's core businesses, increased to 35,905 in April (up 817.1% year on year), 30,123 in May (up 443.8%), and 30,700 in June (up 187.9%) (source: Japan National Tourism Organization (JNTO); June is a JNTO estimate). The number of inbound visitors to Japan also increased to 10,853 in April (up 272.1% year on year), 10,000 in May (up 501.3%), and 9,300 in June (up 262.6%). Although both Japanese outbound travelers and inbound visitors to Japan were trending higher than in the same months of the previous year, they remained far below pre-pandemic levels (source: Japan National Tourism Organization (JNTO); May and June are JNTO estimates).」

「During the cumulative third quarter of the fiscal year, uncertainty in overseas economic developments deepened due to concerns over trade friction stemming from US protectionist policies and the slowdown in the Chinese economy. International travel between Japan and overseas destinations remained suspended due to the global spread of COVID-19, leaving economic activity in an extremely severe condition. COVID-19 infections were resurging in the US and Europe, and the possibility of a resurgence also existed in Japan, so conditions involving downside risks to the economy continued.」

「During the cumulative second quarter of the fiscal year, uncertainty in overseas economic developments continued due to concerns over trade friction stemming from US protectionist policies and a slowdown in the Chinese economy. As COVID-19 spread globally, many countries issued states of emergency, lockdowns were imposed on cities and countries, and the movement of people came to a halt, leaving economic activity in an extremely severe condition.」

「During the cumulative first quarter of the fiscal year, the global economy's slowdown intensified due to the prolonged impact of US-China trade friction and the spread of COVID-19, and the outlook was extremely uncertain.」

「During the consolidated fiscal year, Japan's economy remained on a moderate recovery trend, with improvements in corporate earnings and employment conditions and signs of a recovery in personal consumption. However, the outlook remained uncertain due to uncertainty in the global economy resulting from the prolonged US-China trade dispute and intensifying tensions in the Middle East, as well as concerns over the effects of natural disasters such as typhoons and the consumption tax increase.」

「The number of Japanese travelers departing for overseas, which affects the performance of the Group's principal businesses, increased year on year to 1,659 thousand in July, up 6.5% from the same month of the previous year, 2,109 thousand in August, up 3.7%, and 1,751 thousand in September, up 7.4% (source: Japan National Tourism Organization (JNTO); July and August figures are provisional, and September is an estimate). The number of foreign visitors to Japan also increased year on year except in August, reaching 2,991 thousand in July, up 5.6% from the same month of the previous year, 2,520 thousand in August, down 2.2%, and 2,272 thousand in September, up 5.2% (source: Japan National Tourism Organization (JNTO); July is provisional, and August and September are estimates).」

「However, the outlook remained uncertain due to concerns including escalating US-China trade friction and the impact of the UK's withdrawal from the EU.」

「Concerns including uncertainty over negotiations on the UK's withdrawal from the EU and the outlook for US trade policy persisted, and the economic outlook was expected to remain uncertain.」

「During the cumulative third quarter of the fiscal year, Japan's economy remained on a moderate recovery trend, with improving corporate earnings and a gradual recovery in employment and income conditions. However, consumers remained strongly inclined to economize, and the outlook remained uncertain due to uncertainty in overseas economies, including concerns over trade friction.」

「Meanwhile, concerns over the impact of policies under the new US administration, political risks in Europe and geopolitical risks in East Asia have kept the economic outlook uncertain.」

「Meanwhile, overseas economies faced an unpredictable outlook due to rising geopolitical risks in the Middle East and around North Korea, concerns over protectionist economic policies under the new US administration, and the UK's Brexit issue.」

「During the cumulative second quarter of the fiscal year, the global economic outlook remained uncertain due to the UK's Brexit issue, policy trends under the new US administration, a slowdown in emerging-market economies, and fluctuations in crude oil prices and exchange rates, although」

「During the cumulative first quarter of the fiscal year, the global economy remained uncertain due to turbulence in the European economy related to the UK's Brexit issue, downside risks in emerging Asian economies, particularly China, policy changes following the inauguration of a new US administration, and rising tensions surrounding North Korea.」

「Meanwhile, overseas economies remained uncertain, due to the UK's Brexit issue, slowing growth in emerging Asian economies and sharp volatility in financial markets resulting from factors including the US presidential election.」

「During the cumulative third quarter of the fiscal year, Japan's economy remained on a moderate recovery trend, but the economic outlook remained uncertain due to downside risks in China and other emerging Asian economies and resource-exporting countries, as well as increasing uncertainty in overseas economies, including the UK's Brexit issue.」

「The yen appreciated and stock prices declined against a backdrop of concerns over an economic slowdown in emerging markets, particularly China, and instability in the European economy following the UK's decision to leave the EU. The outlook for the economy remains uncertain.」