Global Political and Economic Trends

「一方、海外情勢においては、中東情勢の悪化に起因するエネルギー価格の急騰に伴い、ユーロ圏を中心に景況感が大きく低下する中、６月中旬に米国とイランが戦闘終結に向けた暫定合意に達したことにより、先行き不透明感が和らぎ、景況感は緩やかに改善する方向で推移いたしました。」

「During the consolidated fiscal year, the Japanese economy continued to grow at a gradual pace overall, despite the impact of rising inflation risks associated with trade policies and tariff measures by various countries, including those of the US, and the situation in the Middle East. Overseas, uncertainty remained high amid the possibility that countries' trade policies could weigh on the global economy through their impact on global trade activity and international financial and capital markets, and the possibility that higher crude oil prices resulting from the situation in the Middle East could have a negative impact on the global economy through deteriorating terms of trade and other effects.」

「Meanwhile, overseas conditions remained highly uncertain amid the expansion of protectionist policies associated with tariff measures introduced by various countries and their impact on global trade, geopolitical risks related to Ukraine and the Middle East, concerns about a slowdown in overseas economies, and surging commodity prices.」

「During the consolidated fiscal year, the Japanese economy continued to grow at a gradual pace overall, as corporate earnings and employment and income conditions improved against a backdrop of a weaker yen and increased inbound demand, while personal consumption and capital investment remained firm. Overseas, however, uncertainty remained high amid the slowdown in the European and Chinese economies, geopolitical risks related to Ukraine and the Middle East, the impact of the US presidential election, including the Trump tariffs, on fiscal policy, monetary policy and international trade markets, and trends in resource and energy prices.」

「During the six-month interim consolidated period ended 30 September 2024 (1 April 2024 to 30 September 2024), the global economy remained highly uncertain amid concerns about geopolitical risks related to Ukraine and the Middle East, the impact of the US presidential election on fiscal policy and financial markets, adjustment pressures in China's labor and real estate markets, and trends in resource and energy prices.」

「During the consolidated fiscal year, the global economy remained highly uncertain and the pace of recovery slowed amid concerns about rising geopolitical risks associated with the prolonged situation in Ukraine and heightened tensions in the Middle East, the downturn in the Chinese economy resulting from the real estate slump, higher resource and energy prices, and persistent global inflationary pressure.」

「During the nine-month period ended 31 December 2023 (1 April 2023 to 31 December 2023), the global economy remained highly uncertain and the pace of recovery slowed amid concerns about rising geopolitical risks associated with developments in Ukraine, the Middle East and China, higher resource and energy prices, persistent global inflationary pressure, and downward pressure on the economy from the resulting monetary tightening policies.」

「During the six-month period ended 30 September 2023 (1 April 2023 to 30 September 2023), the global economy remained highly uncertain and the pace of recovery slowed amid concerns about rising geopolitical risks associated with the prolonged situation in Ukraine, heightened tensions in the Middle East and developments in China, higher resource and energy prices, and downward pressure on the economy from rising inflation, particularly in Europe and the US, and the resulting monetary tightening policies.」

「During the three-month period ended 30 June 2023 (1 April 2023 to 30 June 2023), the global economy continued to recover at a gradual pace, but concerns remained about the rising geopolitical risks associated with the prolonged situation in Ukraine, higher resource and energy prices, and downward pressure on the economy from persistently high inflation, particularly in Europe and the US, and the resulting monetary tightening policies.」

「During the consolidated fiscal year, the global economy showed signs of a gradual recovery. However, concerns remained over higher resource and energy prices associated with the prolonged situation in Ukraine, global supply chain disruptions, production constraints and shortages of resources and materials, the impact of China's zero-COVID policy on economic activity, increasing downside risks to the global economy resulting from countries' shifts toward monetary tightening policies, and financial system concerns in Europe and the US.」

「During the nine-month period ended 31 December 2022 (1 April 2022 to 31 December 2022), concerns included higher resource and energy prices associated with the prolonged situation in Ukraine, global supply chain disruptions, production constraints and shortages of resources and materials, supply chain disruptions caused by the resurgence of COVID-19 infections, and increasing downside risks to the global economy resulting from countries' shifts toward monetary tightening policies.」

「Meanwhile, close attention must be paid to the impact on the global economy of higher resource and energy prices associated with the prolonged situation in Ukraine, global supply chain disruptions, production constraints and shortages of resources and materials, and shifts by countries toward monetary tightening policies against a backdrop of worldwide inflation. As concerns about stagflation, in which high prices and an economic slowdown advance simultaneously, grow, the outlook remains uncertain.」

「During the three-month period ended 30 June 2022 (1 April 2022 to 30 June 2022), the global economy saw many countries seeking to balance measures to prevent the spread of COVID-19 with the revitalization of economic activity. However, concerns remained about the impact on the global economic recovery of higher resource and energy prices associated with the prolonged situation in Ukraine, global supply chain disruptions, increasingly severe production constraints and shortages of resources and materials amid the pandemic, and shifts toward monetary tightening policies against a backdrop of worldwide inflation. The outlook therefore remained uncertain.」

「However, the outlook remains uncertain because China's zero-COVID policy has disrupted production and logistics, while Russia's military invasion of Ukraine has caused global supply chain disruptions and increased upward pressure on prices.」

「In our Group's business activities, the procurement of parts remained unstable because of supply chain disruptions caused by COVID-19 and fluctuations in demand, but domestic capital investment continued on a recovery trajectory. Overseas demand also recovered in China, other parts of Asia, the US and Europe.」

「During the six-month period ended 30 September 2021 (1 April 2021 to 30 September 2021), the global economy saw COVID-19 infections expand and contract from country to country and region to region, but many countries increasingly focused on recovering business activity and other economic activities.」

「During the six-month period ended 30 September 2021 (1 April 2021 to 30 September 2021), the global economy saw COVID-19 infections expand and contract from country to country and region to region, but many countries increasingly focused on recovering business activity and other economic activities.」

「The differences in COVID-19 infection rates and economic measures across countries and regions were strongly reflected in economic conditions, resulting in an uneven recovery. The Chinese economy showed signs of a gradual recovery, while the US economy accelerated its recovery from the coronavirus crisis as the spread of vaccines led to the easing of public health measures, alongside large-scale fiscal support.」

「During the consolidated fiscal year, the operating environment for our Group was affected by COVID-19 and US-China trade friction. Production activity declined worldwide and across all industries, except in some areas, while companies continued to take a cautious approach to capital investment.」

「During the third quarter of the current consolidated cumulative period (1 April 2020 to 31 December 2020), the global spread of COVID-19 continued unabated, and many countries reinstated restrictions on movement and travel, continuing to cause significant damage to economic activity. However, in China, which contained COVID-19, signs of an early economic recovery emerged, particularly in automobile production, and related supply chains also began to show signs of recovery worldwide.」

「During the second quarter of the current consolidated cumulative period (1 April 2020 to 30 September 2020), the outlook remained uncertain due to the continued spread of COVID-19 and the impact of US-China trade friction, while external conditions remained uneven as countries moved at different paces toward resuming economic activity.」

「During the first quarter of the current consolidated cumulative period (1 April 2020 to 30 June 2020), various activities stagnated worldwide due to the spread of COVID-19, although some areas showed signs of recovery.」

「The Group's operating environment remained marked by global caution toward capital investment due to the impact of US-China trade friction. In particular, the spread of COVID-19 in the fourth quarter rapidly depressed global production and consumption activity, resulting in an economic slowdown on an unprecedented scale.」

「During the third quarter of the current consolidated cumulative period, some compromises toward resolving US-China trade friction began to emerge. However, the drag on economic recovery continued in most countries, and cautious capital investment stances did not abate.」

「During the second quarter of the current consolidated cumulative period, consultations and inquiries concerning equipment development projects such as 5G and EVs remained strong. However, amid turmoil in the global economy, customers continued to defer orders for non-urgent, forward-looking capital investment projects, leaving orders received sluggish.」

「Regarding the recent environment surrounding the Company, there have been signs that customers are curbing capital investment under the impact of US-China trade friction, and it remains unclear when this cautious stance will reverse.」

「The global economy remains too uncertain for its recovery outlook to be clear because of the impact of US-China trade friction. Against this backdrop, competition intensified, particularly between the two countries, in business fields related to software such as information processing, AI, IoT and 5G.」

「In recent years, competition for economic leadership arising from the development of rapidly advancing information technologies such as IoT, AI and 5G, as well as future-oriented technologies including autonomous driving, electrification, battery and communications technologies, has intensified, increasing uncertainty.」

「In recent years, uncertainty has continued in the global situation, mainly due to friction arising as major powers pursue unilateral trade strategies based solely on their domestic economic and fiscal conditions, as economic globalization and the borderless nature of business have expanded and become increasingly intertwined, making it more difficult for governments' economic measures to take effect.」

「During the first quarter of the current consolidated cumulative period, uncertainty continued unabated as trade negotiations arising from trade friction between countries intensified.」

「During the third quarter of the current consolidated cumulative period, the global economy remained on an upward trend, supported by strong economic conditions in the United States, an economic recovery in Europe and the Chinese economy, which maintained solid indicators, despite concerns over the rise of protectionist policies and geopolitical risks.」

「During the second quarter of the current consolidated cumulative period, expectations for an economic recovery increased, but many interconnected risks remained unresolved in various countries.」

「Although several reforms were announced in China, it remained difficult to assess their results, and uncertainty continued, including regarding the direction of the Chinese economy.」

「During the first quarter of the current consolidated cumulative period, the global economy was temporarily thrown into considerable turmoil by the unexpected outcome of the UK's withdrawal from the EU, while concerns also emerged over the management of certain European financial institutions.」

「Users of the Group's major products are dispersed around the world, and many of them operate globally. Accordingly, global political and economic trends could adversely affect the Group's business performance and financial position.」