Demand loss and stalled economic activity caused by the spread of COVID-19

「During the first three months of the current fiscal year, Japan's economy showed signs of recovery in corporate activity and personal consumption, although concerns remained about a resurgence in COVID-19 infections and there were no restrictions on activities.」

「As corporate activity recovered and cargo movements increased due to the effects of vaccinations, shipping market conditions, particularly for container vessels, became more active. However, new variants were spreading rapidly, leaving the outlook uncertain.」

「During the first six months of the current fiscal year, Japan's economy remained subject to restrictions on economic activity and personal consumption because of states of emergency and priority preventive measures. Although exports and manufacturing showed signs of gradual improvement, driven by external demand, the divide among industries widened, with performance remaining sluggish, particularly in the services sector.」

「During the first three months of the current fiscal year, Japan's economy remained in difficult conditions, with no prospect of the COVID-19 pandemic subsiding as the period and geographic coverage of states of emergency and priority preventive measures were extended amid a resurgence in infections. Although vaccinations were progressing in Japan, concerns about the spread of new variants meant that the situation remained unpredictable.」

「With no end to COVID-19 in sight, corporate activity is expected to be restricted and corporate earnings to deteriorate. In addition, restrictions on going out are expected to increase because of the impact of another state of emergency and priority preventive measures, causing personal consumption to remain sluggish.」

「During the third quarter of the fiscal year, Japan's economy rapidly deteriorated due to the impact of COVID-19, then gradually showed signs of recovery as companies resumed production and other activities following the lifting of the state of emergency. However, infections continued to spread and the outlook became even more uncertain. Although COVID-19 vaccines had been developed and vaccination began in Europe and the United States, there were still no signs of the pandemic subsiding, and the outlook for the global economy remained uncertain.」

「During the first six months of the current fiscal year, Japan's economy saw inbound demand disappear and people refrain from going out because of COVID-19, while corporate earnings and the employment and income environment deteriorated rapidly. Companies subsequently resumed production and other activities following the lifting of the state of emergency, and signs of a gradual recovery emerged, but the outlook remained uncertain, with differences in the pace of recovery among industries.」

「The spread of COVID-19 eliminated inbound demand and, amid growing public pressure to refrain from activities under the state of emergency, rapidly worsened corporate earnings and the employment and income environment, further heightening concerns about the outlook. The global economy also remained uncertain because of stalled economic activity accompanying the spread of the virus.」