Risk of downward pressure on domestic economic conditions stemming from uncertainty in overseas economies

「Looking ahead, the economy is expected to recover gradually as the US economy stabilizes and real wages stop declining. However, following the large-scale attacks on Iran by the US and Israel at the end of February 2026, concerns remain that developments could weigh on the economy through surging prices for crude oil and other materials.」

「当連結会計年度における世界経済は、米国トランプ政権の通商政策と中東情勢の不安定を主因として不確実性が高まり、世界経済の成長が減速しました。」

「Japan’s economy maintained a gradual recovery trend during the interim consolidated accounting period, but personal consumption weakened due to high prices and exports slowed. Overseas economies were on a recovery trend, although conditions varied by region, but risks of an economic downturn remained due to supply shortages resulting from worsening international conditions and developments in tariff policies. Japan’s economic outlook remained uncertain due to rising domestic prices, US policy developments, and the resulting volatility in financial, capital, trade, and foreign exchange markets.」

「Japan’s economy recovered gradually during the fiscal year. However, economic conditions were volatile, with the Nikkei Stock Average and exchange rates fluctuating significantly during the period. Overseas, although conditions varied by region, global growth slowed, and worsening international conditions created risks of supply shortages and an economic downturn. Uncertainty about the outlook persisted due to rising domestic prices, the future direction of US policy, and the resulting volatility in financial, capital, and foreign exchange markets.」

「During the fiscal year, economic activity recovered gradually through the middle of the fiscal year as restrictions on movement related to COVID-19 were eased. Meanwhile, global supply shortages resulting from worsening international conditions, higher raw material and supply prices due to yen depreciation, and rising prices generally continued. Uncertainty about the outlook persisted, including the risks of further yen depreciation and supply constraints due to labor shortages.」

「During the third-quarter cumulative period, economic activity was on a recovery trend as restrictions on movement related to COVID-19 were eased. Meanwhile, global supply shortages resulting from worsening international conditions, higher raw material and supply prices due to yen depreciation, and rising prices generally continued. In addition, the impact on the economy of the 2024 Noto Peninsula Earthquake remained a concern, and uncertainty about the outlook persisted.」

「Although the temporary rise in import prices was beginning to ease, prices for raw materials and supplies continued to rise due to global supply shortages and yen depreciation, as did prices generally. While a gradual economic recovery is still expected, risks to the economic outlook include high prices, consumers’ inclination to economize, higher crude oil prices resulting from international developments, and a slowdown in overseas economies.」

「As COVID-19 infections repeatedly rose and declined, the economy showed signs of gradually normalizing. Although the temporary rise in import prices caused by the rapid yen depreciation was beginning to ease, prices for raw materials and supplies continued to rise due to global supply shortages, as did prices generally.」

「During the third-quarter cumulative period, Japan’s economy showed signs of gradually normalizing as COVID-19 infections repeatedly rose and declined. The rise in import prices caused by the rapid yen depreciation was beginning to ease, but prices for raw materials and supplies continued to rise due to global supply shortages, as did prices generally. In addition to the continuing shortages of semiconductors and other components, global inflation has become an issue, raising concerns about the risk of a future economic downturn.」

「During the second-quarter cumulative period, although the spread of COVID-19 showed signs of gradually subsiding, the prolonged situation in Ukraine drove up prices for energy and other raw materials, while the yen depreciated rapidly and corporate prices rose. Shortages of semiconductors and other components that arose with the outbreak of the infection have continued, and depending on how these issues develop, concerns remain about a future economic downturn.」

「During the first-quarter cumulative period, although the spread of COVID-19 was gradually subsiding, the prolonged situation in Ukraine drove up prices for energy and other raw materials, while the yen weakened further and logistics and other costs rose.」

「Japan’s economy repeatedly deteriorated and recovered during the fiscal year amid several waves of COVID-19 infections and responses including states of emergency, but began to recover gradually toward the fiscal year-end. However, in addition to surging prices for energy and other raw materials due to the worsening situation in Ukraine, the yen weakened, driving up logistics and other costs. Shortages of semiconductors and other components that arose with the outbreak of COVID-19 have continued, and depending on how these issues develop, concerns remain that the economic recovery could be delayed.」

「During the third-quarter cumulative period, Japan’s economy showed signs of recovery after the state of emergency was lifted once, but recovery was delayed as COVID-19 infections spread rapidly into the summer. From September onward, new cases declined, states of emergency and other measures were lifted nationwide, and the economy began to recover. However, in addition to the renewed spread of COVID-19 and restrictions on economic activity, shortages of semiconductors and other components and rising raw material prices emerged, raising concerns about the future economic recovery.」

「During the first-quarter cumulative period, Japan’s economy showed signs of recovery after the state of emergency was lifted once. However, the spread of COVID-19 showed no sign of subsiding, and states of emergency and priority preventive measures were issued and extended, raising serious concerns about the impact on the economy.」

「During the fourth quarter, states of emergency were reissued in 10 prefectures, including the Tokyo metropolitan and Kinki regions, and in April this year a third state of emergency was issued in Tokyo, Osaka, and other prefectures. Depending on the future course of the pandemic, the economy could decline further.」

「After the state of emergency was lifted, economic activity resumed and the economy gradually recovered. However, infections spread again through December, raising concerns about the impact on economic activity. After the new year, states of emergency were reissued in the Tokyo metropolitan area and elsewhere, creating a risk that the economy could decline further.」

「However, a rapid recovery in corporate earnings is not expected, and the improvement ahead is expected to be limited, leaving a significant risk of an economic downturn.」

「During the first-quarter cumulative period, Japan’s economy deteriorated rapidly across personal consumption, capital investment, and corporate earnings due to the impact of COVID-19.」

「Japan’s economy generally remained weak during the fiscal year, but declined in the fourth quarter due to the impact of COVID-19.」

「Uncertainty about the outlook for overseas economies cannot be ruled out, and, in addition to its impact, close attention is required to volatility in the domestic economy, including trends in private demand.」

「Looking ahead, in addition to sluggish corporate production against the backdrop of US-China trade friction and other factors, concerns include a decline in personal consumption resulting from the consumption tax increase, requiring close attention to volatility in the domestic economy.」

「In addition to trade issues and uncertainty surrounding the global economy, the domestic economy requires close attention to volatility, including the planned increase in the consumption tax rate in autumn.」

「Looking ahead, uncertainty surrounding overseas economies remains high, and risks remain that could affect the domestic economy.」

「Looking ahead, uncertainty surrounding overseas economies remains high, creating a risk of downward pressure on the domestic economy.」

「Looking ahead, uncertainty surrounding overseas economies remains high, creating a risk of downward pressure on the domestic economy.」

「Looking ahead, uncertainty surrounding overseas economies remains high, creating a risk of downward pressure on the domestic economy.」

「Looking ahead, uncertainty surrounding overseas economies remains high, creating a risk of downward pressure on the domestic economy.」

「Looking ahead, uncertainty surrounding overseas economies remains high, creating a risk of downward pressure on the domestic economy.」

「Looking ahead, uncertainty surrounding overseas economies remains high, creating a risk of downward pressure on the domestic economy.」

「Looking ahead, uncertainty surrounding overseas economies remains high, creating a risk of downward pressure on the domestic economy.」

「Looking ahead, uncertainty surrounding overseas economies remains high, creating a risk of downward pressure on the domestic economy.」

「Looking ahead, uncertainty surrounding overseas economies remains high, creating a risk of downward pressure on the domestic economy.」

「Looking ahead, uncertainty surrounding overseas economies remains high, creating a risk of downward pressure on the domestic economy.」