Concerns over a global economic downturn due to slowing emerging-market economies and the UK's exit from the EU

「However, the situation is now unpredictable because risks of disruption have emerged, including a possible closure of the Strait of Hormuz and higher crude oil prices resulting from the conflict between Iran and the United States and Israel.」

「At the same time, concerns remain over downside risks to the economy arising from US trade policy and the slowdown in the Chinese economy. In Japan, the operating environment remains difficult to forecast, owing to factors including soaring prices for resin raw materials due to the continued weakening of the yen and rising prices, higher prices for steel and other materials, and higher import prices for materials.」

「In the global economy, uncertainty is increasing as the Trump administration takes office, tariffs are raised and US-China tensions intensify. In addition, cost pressures continue amid persistently high prices for crude oil and other raw materials for resins, as well as prolonged international conflicts.」

「The global economy remains disrupted against a backdrop of geopolitical risks, including the protracted situation in Ukraine and the increasingly tense situation in the Middle East, while energy and material prices remain volatile, leaving the outlook uncertain.」

「Globally, prices continued to rise amid higher resin raw-material costs, the prolonged situations in Ukraine and the Middle East, and unstable international conditions. Downside risks to the global economy therefore required attention, while cost-increasing factors continued, including higher electricity prices, higher prices for steel and other materials, and higher import prices due to yen depreciation.」

「During the cumulative third quarter, Japan’s economy saw the normalization of social and economic activity following the reclassification of COVID-19 as a Class 5 disease, while the global economy remained in a difficult-to-forecast environment amid unstable international conditions, continuing inflation and high energy prices. In Japan, concerns included soaring prices for resin materials, steel and other materials, higher import prices due to the prolonged depreciation of the yen, and stagnant consumption caused by continuing price increases.」

「During the cumulative second quarter, Japan's economic activity showed signs of a moderate recovery, partly because the legal classification of COVID-19 was changed from Category 2 to Category 5 in May 2023. However, globally, inflation and high energy prices continued amid unstable international conditions, while in Japan, higher crude oil prices and resin-material costs caused by rapid yen depreciation remained concerns, and the economic environment continued to be difficult to forecast.」

「During the cumulative first quarter, restrictions on economic and social activity resulting from the COVID-19 pandemic were almost fully lifted, and Japan's economy maintained a moderate recovery trend led by domestic demand. However, the risk of an economic slowdown due to global geopolitical risks and inflation remained high, while concerns over the adverse economic impact of rapid yen depreciation and rising prices in Japan contributed to an increasingly difficult-to-forecast business environment.」

「Meanwhile, the global economy remained uncertain amid higher resin raw-material costs resulting from surging crude oil prices, the prolonged situation in Ukraine and unstable international conditions, as well as longer lead times for electrical components due to semiconductor shortages and rising interest rates in Europe and the US. In addition, cost-increasing factors continued, including higher domestic electricity prices, higher prices for steel and other materials, and higher import prices due to yen depreciation.」

「Meanwhile, the global economy remained uncertain amid higher resin raw-material costs resulting from surging crude oil prices, the prolonged situation in Ukraine and unstable international conditions, as well as longer lead times for electrical equipment due to semiconductor shortages, global logistics disruptions and rising interest rates in Europe and the US. In addition, cost pressures continued from higher domestic electricity prices, higher prices for steel and other materials, and higher import prices due to yen depreciation.」

「The global economy remained uncertain due to higher resin raw-material costs resulting from surging crude oil prices, disruption arising from the prolonged situation in Ukraine and other factors, longer lead times for electrical equipment due to semiconductor shortages, global logistics disruptions, rising interest rates in Europe and the US, and yen depreciation.」

「During the cumulative first quarter, Japan's economy remained uncertain despite signs that the spread of COVID-19 was slowing, as it continued to be affected by higher resin raw-material costs resulting from surging crude oil prices, disruption to the global economy arising from the situation in Russia and Ukraine, longer lead times for electrical equipment due to semiconductor shortages, and continuing global logistics disruptions.」

「The business environment is expected to remain uncertain due to the continuing global spread of COVID-19, higher resin raw-material costs resulting from surging crude oil prices, disruption to the global economy arising from the situation in Russia and Ukraine, longer lead times for electrical equipment due to semiconductor shortages, and global logistics disruptions.」

「During the cumulative third quarter, Japan's difficult economic conditions gradually eased as vaccinations against COVID-19 became more widespread and the state of emergency was lifted, and signs of an economic recovery emerged. However, the risk of a renewed spread of infections, including the emergence of new variants, had not been eliminated, investment in plant and equipment showed signs of stalling in its recovery, and the outlook remained uncertain. Similarly, the global economy remained uncertain due to renewed infections in some regions caused by new variants and other factors.」

「During the cumulative second quarter, the prolonged stagnation of corporate activity and personal consumption due to COVID-19 continued to weigh on economic activity. However, as vaccinations progressed worldwide, including in Japan, efforts to resume economic activity were also seen. Meanwhile, the impact of tensions between the US and China on the global economy remained unpredictable, and the outlook was still uncertain.」

「During the cumulative first quarter, concerns arose over the impact of COVID-19 on corporate activity and personal consumption in Japan. The impact of COVID-19 on the global economy was also significant, and the outlook remained extremely uncertain.」

「Japan's economy was in a difficult situation during the fiscal year, as the global spread of COVID-19 caused continued stagnation in economic activity and weak personal consumption. Although various policy measures and vaccinations were expected to improve economic activity, the outlook remained uncertain, and it was necessary to monitor downside risks to the domestic and overseas economies from a renewed spread of infections and the impact on capital investment.」

「During the cumulative third quarter, Japan's economy continued to contract, with personal consumption and capital investment falling sharply due to the spread of COVID-19. Although gradual efforts to resume economic activity were seen in Japan and overseas, the number of new COVID-19 cases had recently begun rising explosively again, and the outlook remained uncertain because the impact on future economic activity could not be predicted.」

「During the cumulative second quarter, economic activity in Japan continued to stagnate due to COVID-19. As the influenza season approached, concerns arose over the impact of a third wave on the economy, and the economic outlook remained uncertain.」

「During the cumulative first quarter, Japan's outlook initially appeared brighter following the lifting of the state of emergency declared by the government in response to COVID-19. However, with signs of a renewed spread of the disease becoming pronounced, the outlook became extremely uncertain due to its impact on domestic and overseas economies, developments in overseas economies such as US-China trade relations, and volatility in financial and capital markets.」

「Japan's economy remained on a moderate recovery trend during the fiscal year, supported by improving corporate earnings. Although it temporarily declined due to prolonged US-China trade friction and the impact of the consumption tax increase, it remained firm on solid domestic demand. However, the impact of the spread of the novel coronavirus on the Japanese and global economies grew day by day, and the situation remained unpredictable.」

「In overseas economies, increasing attention is required regarding geopolitical risks arising from US-China trade issues, prolonged protests against proposed amendments to Hong Kong ordinances, escalating tensions between the US and Iran, and other factors.」

「Against the backdrop of US-China trade friction, concerns have arisen over slowing economic growth and shrinking trade in China, the downside risks to the global economy and the impact on Japan's economy, and the outlook remains uncertain.」

「During the cumulative first quarter, Japan's economy began to show a marked shift toward a more cautious view of the economic outlook due to concerns over a downturn in the global economy arising from intensifying US-China trade friction and instability in the Middle East. With a consumption tax increase scheduled for October, the outlook was expected to remain uncertain.」

「Japan's economy remained on a moderate recovery trend during the fiscal year, supported by improving corporate earnings. However, concerns over a slowdown in the global economy spread amid concerns over US monetary policy and slowing growth in China and emerging-market economies, and the outlook remained uncertain.」

「Although Japan's economy was in what was described as a recovery phase matching the longest postwar expansion, business production activity remained uneven due to a succession of natural disasters, and signs of stagnation emerged. The outlook for the global economy also became uncertain due to the UK's exit from the EU and the impact of intensifying US-China trade friction on the global economy.」

「During the cumulative second quarter, Japan's economy was on a moderate recovery trend, supported by solid income and employment conditions, but concerns arose over a slowdown in the recovery due to disruptions to consumption and corporate activity caused by torrential rain and earthquakes. Overseas, although concerns over US-China trade friction eased, the outlook remained uncertain.」

「Overseas, the outlook remains uncertain due to concerns over trade friction arising from protectionist policies and uncertain political developments.」

「However, the outlook remains uncertain due to trends in US policy, economic conditions in Asian countries and rising geopolitical risks, among other factors.」

「During the cumulative third quarter, Japan's economy remained on a moderate recovery trend, but the outlook remained uncertain amid concerns over the impact of unstable conditions overseas.」

「During the cumulative second quarter, Japan's economy remained on a moderate recovery trend, with improvements in employment conditions and personal consumption. However, the outlook remained uncertain due to developments in the US administration and the situation on the Korean Peninsula.」

「During the cumulative first quarter, Japan's economy was on a moderate recovery trend, underpinned by improving corporate earnings and employment conditions, among other factors. However, uncertainty over the outlook continued due to the policies of the US administration, the political situation in Europe and rising geopolitical risks in Asia.」

「Meanwhile, the outlook remains uncertain due to the increasing uncertainty surrounding overseas economies, particularly those of the United States and Europe, and volatility in financial and capital markets.」

「During the cumulative third quarter, Japan’s economy was on a gradual recovery trend due to improvements in corporate earnings and employment conditions, but remained in an uncertain outlook amid exchange-rate and crude oil price movements, a slowdown in emerging-market economies, the decision for the UK to leave the EU, and the transition to a new US administration.」

「However, the outlook for the economy remains uncertain due to rising uncertainty arising from slowing emerging-market economies and the UK's EU withdrawal issue, among other factors.」

「The outlook remained uncertain, with concerns over a downturn in the global economy due to slowing economies in emerging markets, including China, and the UK's decision to leave the EU in its national referendum.」