Uncertainty in Economic Conditions, Foreign Exchange Rates and Financial Capital Markets

「During the interim consolidated accounting period, Japan’s economy was gradually recovering, partly due to the effects of various policies. Meanwhile, the economic environment remained uncertain due to the impact of rising prices, US policy developments, the situation in the Middle East, and volatility in financial and capital markets.」

「Japan’s economy currently faces uncertainty about the outlook due to overseas factors, including continued high interest rates in Europe and the United States, the situation in the Middle East and concerns over China’s economic outlook. However, the economy is on a gradual recovery trend, supported in part by the effects of various policies, including improvements in employment and income conditions.」

「During the cumulative third quarter, Japan’s economy was moving toward the normalization of economic activity with COVID-19, but the economic environment remained uncertain due to high prices resulting from the record weakening of the yen and unstable international conditions.」

「Meanwhile, the economic environment remained uncertain due to the impact of international developments, soaring raw material and resource prices, rising prices, and global monetary tightening.」

「Meanwhile, the economic environment remained uncertain due to the impact of unstable international conditions, including the prolonged conflict between Russia and Ukraine, as well as soaring energy and raw material prices, a weaker yen and inflation.」

「Meanwhile, uncertainty about the outlook continued due to the prolonged geopolitical risks surrounding Ukraine and soaring raw material and energy prices.」

「During the cumulative third quarter, Japan’s economy showed some recovery in domestic economic activity as efforts to bring COVID-19 under control accelerated, but concerns over inflation arising from soaring energy and raw material prices due to the prolonged Russia-Ukraine situation increased, and uncertainty about the outlook continued.」

「During the cumulative second quarter, Japan’s economy showed some recovery in domestic economic activity as efforts to bring COVID-19 under control accelerated, but concerns over inflation arising from soaring energy and raw material prices due to the prolonged Russia-Ukraine situation increased, and uncertainty about the outlook continued.」

「During the cumulative first quarter, Japan’s economy showed some recovery in domestic economic activity as it moved toward a new phase of living with COVID-19, including the easing of restrictions on activity and overseas travel. However, the resurgence of COVID-19, soaring raw material and crude oil prices, and continued inflation caused by the sharp weakening of the yen left the outlook uncertain.」

「Japan’s economy was on a gradual recovery trend as the difficult conditions caused by COVID-19 gradually eased, but the outlook remained uncertain amid escalating international tensions, including Russia’s invasion of Ukraine, a sharp weakening of the yen, and soaring raw material and energy prices.」

「During the cumulative third quarter, Japan’s economy was on a gradual recovery trend as the difficult conditions caused by COVID-19 gradually eased, but the outlook remained uncertain due to factors including higher resource prices amid escalating tensions in the Ukraine crisis, inflationary pressure from a weaker yen against the backdrop of a widening Japan-US interest-rate differential, a slowdown in the economic recovery caused by rising interest rates as the United States and other countries tightened monetary policy, and concerns over an economic downturn caused by production constraints and shortages of goods accompanying China’s zero-COVID policy.」

「During the cumulative second quarter, Japan’s economy entered conditions in which economic activity was expected to pick up as the number of new infections gradually declined due to rising vaccination rates and the effects of various policies aimed at curbing the spread of infections. However, infections were resurging because of the emergence of new variants, and uncertainty about the outlook continued. In addition, the escalation of geopolitical tensions since late February has created uncertainty for global economic growth, increasing concerns about its impact on Japan’s economy.」

「During the cumulative first quarter, Japan’s economy remained in a difficult situation as the impact of COVID-19 persisted, including signs of a resurgence in infections in some overseas regions. Although the number of new infections gradually declined due to the spread of vaccinations and the effects of various policies aimed at curbing the spread of infections, creating conditions in which economic activity was expected to pick up, uncertainty about the outlook continued because of factors including semiconductor supply shortages and soaring raw material prices.」

「With the state of emergency lifted in some areas and measures to prevent the spread of disease implemented in others, and with vaccinations beginning to progress, an economic recovery is expected, although the outlook is still expected to remain uncertain.」

「However, at the beginning of the new year, a renewed surge in COVID-19 infections led to the reissuance of a state of emergency, and the outlook is expected to remain uncertain.」

「During the cumulative first quarter, Japan’s economy remained in a difficult situation due to the impact of COVID-19 in Japan and overseas. Although signs of a recovery in domestic economic conditions were emerging, supported in part by government efforts to maintain socioeconomic activity while preventing the spread of COVID-19, uncertainty about the outlook continued, including concerns over a resurgence of infections.」

「Japan’s economy had continued on a gradual recovery trend as employment and income conditions improved, but conditions changed significantly due to the impact of the prolonged US-China trade friction, the UK’s departure from the EU and other overseas economic factors, in addition to the spread of COVID-19, leaving the outlook uncertain amid concerns over the impact on domestic and overseas economies and volatility in financial and capital markets.」

「During the cumulative third quarter, Japan’s economy was on a gradual recovery trend as employment and income conditions continued to improve, but it contained risks of a slowdown in the global economy, including the prolonged US-China trade friction, the UK’s departure from the EU and the global spread of COVID-19, leaving the outlook uncertain.」

「During the cumulative second quarter, Japan’s economy was on a gradual recovery trend as employment and income conditions continued to improve, but it contained risks of a slowdown in the global economy, including the prolonged US-China trade friction, the UK’s departure from the EU and the global spread of COVID-19, leaving the outlook uncertain.」

「During the cumulative first quarter, Japan’s economy continued to show improvements in corporate earnings and employment and income conditions against the backdrop of government economic and monetary policies, and remained on a gradual recovery trend, although overseas economies faced uncertainty stemming from trade issues.」

「During the cumulative third quarter, Japan’s economy continued on a gradual recovery trend due to improvements in corporate earnings and employment and income conditions, although uncertainty about the outlook remained amid restrained investment by exporters stemming from US-China trade friction, unstable economic conditions caused by the UK’s departure from the EU, and geopolitical risks in East Asia.」

「During the cumulative second quarter, Japan’s economy continued on a gradual recovery trend due to improvements in corporate earnings and employment and income conditions, although uncertainty about the outlook remained because of the impact of US-China trade friction, the UK’s departure from the EU and geopolitical risks in East Asia.」

「During the cumulative first quarter, Japan’s economy continued to show improvements in corporate earnings and employment and income conditions against the backdrop of government economic and monetary policies, and remained on a gradual recovery trend, although overseas economies faced uncertainty stemming from trade issues.」

「Japan’s economy is currently on a gradual recovery trend, but uncertainty about the outlook remains.」

「During the cumulative second quarter, Japan’s economy faced uncertainty about the outlook due to the impact of US policy management and political developments in Europe and heightened geopolitical risks in East Asia, although corporate earnings and employment conditions were on a gradual recovery trend against the backdrop of government economic and monetary policies.」

「During the cumulative first quarter, Japan’s economy was on a gradual recovery trend supported by monetary and economic policies, although attention remained necessary regarding overseas policy developments, particularly in the United States, and geopolitical risks.」

「During the fiscal year, Japan’s economy remained uncertain as to the outlook amid unstable US policy management and heightened geopolitical risks, while employment and income conditions were gradually improving on the back of monetary and economic policies.」

「The economic outlook has become uncertain due to concerns over a downturn in overseas economies arising from factors including slower economic growth in emerging Asian economies, particularly China, and political developments in Europe, the United States and elsewhere.」

「Although the outlook for the economy remains uncertain, with foreign exchange rates and stock prices continuing to be unstable amid concerns over slower economic growth in China and emerging Asian economies and policy developments following the US presidential election, Japan’s economy is gradually improving, with personal consumption remaining firm as employment and income conditions improve.」

「Although business sentiment is gradually recovering, supported by the trend toward a weaker yen and higher stock prices following the US presidential election and improvements in employment and income conditions, uncertainty about the outlook continues due to the potential impact of the new US administration, the effectiveness of various economic measures, and sluggish growth in disposable income accompanying increases in social insurance premiums and other costs.」

「Meanwhile, amid concerns over the political systems of Western countries, including the UK’s departure from the EU, and the slowdown in emerging economies, particularly China, the stronger yen and weaker stock prices continued, further heightening uncertainty about the outlook.」

「We believe it is necessary to continue closely monitoring the impact of the UK referendum on leaving the EU on the global economy, stock markets, foreign exchange markets and Japan’s economy.」