Deterioration in the External Environment Due to a Stronger Yen, Falling Stock Prices and Turmoil in Global Markets

「Meanwhile, in addition to the impact of rising prices on personal consumption, downside risks to the economy stemming from heightened tensions in the Middle East and trends in crude oil prices remain, and the outlook continues to be uncertain.」

「Amid heightened geopolitical risks associated with U.S. tariff policy and escalating tensions in the Middle East, energy and raw material prices remain elevated. In addition, concerns over an economic downturn due to exchange-rate fluctuations persist, and the outlook remains uncertain.」

「The economic outlook remains uncertain due to downside risks from the effects of U.S. trade policy and surging resource and raw material prices resulting from the prolonged situation in Ukraine and the Middle East, among other factors.」

「In the domestic economy, personal consumption and inbound demand recovered as restrictions on activities were eased following the reclassification of the novel coronavirus disease to Category 5 in May 2023. In addition, the Bank of Japan lifted its negative interest rate policy amid expectations that wage increases resulting from the spring wage negotiations would exceed the previous year's level, and the economy remained on a gradual recovery path. However, the outlook remains uncertain due to rising prices caused by surging energy and raw material prices, including crude oil, attributable to geopolitical risks such as Russia's invasion of Ukraine and the situation in Israel and Gaza; continued yen depreciation resulting from global monetary tightening; and the enormous damage caused by the Noto Peninsula Earthquake on New Year's Day 2024.」

「During the first nine months of the fiscal year, the economy shifted to a gradual recovery path as restrictions related to the novel coronavirus disease were substantially eased, economic activity normalized, and the Nikkei 225 Stock Average rose. However, the outlook remains uncertain due to factors including surging global energy and raw material prices resulting from heightened geopolitical risks such as the conflict in Ukraine, pressure on corporate earnings from higher logistics costs, and sharp exchange-rate fluctuations.」

「Restrictions that had been imposed in Japan and abroad were substantially eased, social life returned almost to normal, and economic activity resumed from the COVID-19 pandemic. Inbound demand from foreign visitors also recovered to nearly pre-pandemic levels as the yen weakened, and the economy shifted to a gradual recovery path. However, the outlook remains uncertain due to factors including surging global energy and raw material prices resulting from the prolonged situation in Ukraine, pressure on corporate earnings from higher logistics costs, and sharp exchange-rate fluctuations.」

「In the domestic economy, restrictions that had been imposed due to the novel coronavirus disease were substantially eased and the economy shifted to a gradual recovery path. However, the outlook remains uncertain due to the prolonged situation in Ukraine, rising global energy and raw material prices, higher logistics costs, inflation resulting from the rapid depreciation of the yen and other factors, and substantial fluctuations in foreign exchange rates.」

「During the first nine months of the fiscal year, restrictions related to the novel coronavirus disease and Japan's border-control measures were eased, and social life and economic activity began to normalize gradually as "With COVID-19" took hold across various areas. However, inflationary pressure intensified as resource prices, including crude oil, surged amid heightened tensions in Ukraine and the yen reached historically weak levels, driving up prices for electricity, food, and other goods, and the economy remained on an uncertain path.」

「During the first six months of the fiscal year, the Japanese economy saw a sharp increase in infections associated with the seventh wave of the novel coronavirus caused by a new variant. However, economic conditions showed signs of recovery as vaccination rates rose and the normalization of social and economic activity progressed through the easing of restrictions on activities. At the same time, concerns remain over the effects of economic sanctions imposed by governments in response to the prolonged Russian invasion of Ukraine, while surging raw material prices caused by the rapid depreciation of the yen and other factors have driven up prices, leaving the economic outlook uncertain.」

「The economic outlook remains uncertain due to the renewed spread of infections caused by variants, the rapid depreciation of the yen, surging raw material prices resulting from the situation in Ukraine and other factors, and supply chain disruptions.」

「Toward the end of the year, the global resurgence of the Omicron variant of the novel coronavirus disease meant that the timing of containment remained unforeseeable. In addition, in February, the situation in Ukraine led to surging crude oil and raw material prices and higher import prices due to exchange-rate movements, and the economic outlook remains uncertain.」

「Toward the end of the year, the global resurgence of the Omicron variant of the novel coronavirus disease meant that the timing of containment remained unforeseeable, leaving concerns and uncertainty over the outlook unresolved.」

「However, the timing of the containment of the novel coronavirus remains unforeseeable, and uncertainty over the outlook continues.」

「Although the state of emergency was lifted in May and progress was made in vaccinations in Japan, the timing of the containment of the novel coronavirus remains unforeseeable due in part to the spread of variants such as the Delta variant, and the outlook continues to be uncertain.」

「Economic activity was severely restricted by the declaration of a state of emergency and other measures taken in response to the spread of the novel coronavirus disease, causing corporate earnings, employment conditions, and personal consumption to deteriorate sharply. Although some signs of recovery were subsequently seen in economic conditions, the outlook remains extremely uncertain as a renewed spread of infections led to the declaration of another state of emergency covering certain prefectures.」

「During the first nine months of the fiscal year, economic activity that had stagnated due to the impact of the novel coronavirus gradually resumed, and some recovery was seen in economic conditions. However, a strong sense of caution toward a second and third wave of infections remains, and the outlook continues to be uncertain.」

「During the first six months of the fiscal year, the Japanese economy deteriorated rapidly as personal consumption and corporate activity declined due to the spread of the novel coronavirus disease. After the state of emergency was lifted in May, economic activity gradually resumed and some recovery was seen in economic conditions, but the outlook remains uncertain.」

「Personal consumption and corporate activity declined rapidly and remained in difficult conditions due to the declaration of a state of emergency in April and requests to refrain from going out in response to the spread of the novel coronavirus disease. Although the state of emergency was lifted in May, the timing of the containment of the novel coronavirus remains unforeseeable, and the outlook continues to be uncertain.」

「The domestic economy remained in a situation of rapidly intensifying stagnation as economic activity slowed due to the global spread of the novel coronavirus disease from 2020.」

「The outlook remains uncertain due to concerns over the impact of uncertainty in overseas economies, including trade issues and trends in the Chinese economy.」

「The outlook remains uncertain due to concerns over the impact of uncertainty in overseas economies, including the prolonged U.S.-China trade friction and trends in the Chinese and European economies.」

「The outlook remains uncertain due to concerns over the impact of uncertainty in overseas economies, including the prolonged U.S.-China trade friction and trends in the Chinese and European economies.」

「The economy was temporarily depressed, mainly in terms of personal consumption and exports, by the effects of a succession of natural disasters from July through September. In addition, the outlook remains uncertain due to the prolonged trade friction between foreign countries in the global economy and uncertainty in overseas economies, including the slowdown in the Chinese economy.」

「During the first nine months of the fiscal year, the Japanese economy remained on a gradual recovery path, supported by improved corporate earnings and employment and income conditions. However, the outlook remains uncertain due to concerns over the effects of a succession of natural disasters across Japan and trade disputes between foreign countries.」

「During the first six months of the fiscal year, the Japanese economy remained on a gradual recovery path, supported by improved corporate earnings and employment and income conditions. However, the outlook remains uncertain due to concerns over the rising geopolitical risks in neighboring countries and the impact of trade disputes between foreign countries, as well as the effects of a succession of natural disasters across Japan.」

「During the cumulative first-quarter period under review, Japan's economy continued on a moderate recovery trend against a backdrop of improving corporate earnings and employment and income conditions. However, the outlook remains uncertain amid concerns about the impact of US policy developments and rising geopolitical risks in neighboring countries.」

「Corporate earnings and employment conditions showed signs of improvement, and the economy continued on a moderate recovery trend. However, the outlook remains uncertain amid concerns about the impact of US economic policy management and rising geopolitical risks in Asia.」

「However, concern remains about the impact on the domestic economy of global economic uncertainty and rising geopolitical risks, and the outlook remains uncertain.」

「Close attention is also required to the impact on the global economy of differences in the processes by which the US economy and the monetary policies of various countries move toward normalization. The situation therefore remains unpredictable.」

「However, domestic consumption in Japan remains sluggish and economic sentiment has not improved. Overseas, concerns continue to accumulate, including economic trends in China and emerging markets, uncertainty over US economic, fiscal, trade and foreign policies, oil market trends, instability in Europe accompanying the rise of populism, and the resulting foreign exchange risks. The situation therefore remains unpredictable.」

「While concern remains about the impact on retail companies of sluggish domestic consumption and on exporters' earnings of the stronger yen, other concerns also remain, including the outlook for US policy rates and economic conditions, the US presidential election, China's economic trends, the outlook for the European economy following the UK's decision to leave the EU, and the future direction of the oil market. The situation therefore remains unpredictable.」

「The stock and foreign exchange markets continued to reflect the stronger yen and lower stock prices seen since the beginning of 2016, while the economic effects of Abenomics' “three arrows” diminished and deterioration in market conditions began to emerge. During this period, concerns arose one after another, including the potential impact of the Kumamoto Earthquake on the Kyushu economy and the automobile industry, the Bank of Japan's decision not to implement additional monetary easing, concerns about Japan's fiscal consolidation following the decision to postpone the consumption tax increase again, and turmoil in global markets stemming from credit concerns following the UK's referendum decision to leave the EU.」