Economic stagnation due to yen appreciation, slowing emerging markets and sluggish personal consumption

「During the interim accounting period under review, Japan's economy continued on a gradual recovery trend, supported by resilient personal consumption despite the impact of high prices, owing to policy effects including improvements in electricity and gas subsidies and the abolition of the provisional gasoline tax rate. However, downside risks to the economy have increased due to factors including slower inbound demand resulting from deteriorating Japan-China relations and escalating tensions involving Iran, increasing uncertainty over the outlook.」

「Although Japan's domestic economy is expected to remain on a gradual recovery trend due to improvements in employment and income conditions and the effects of various policies, the outlook is expected to remain uncertain due to downside risks from the impact of US trade policy, declining consumer sentiment caused by continued price increases, and volatility in financial and capital markets.」

「During the interim accounting period under review, Japan's economy continued to recover gradually overall. Real wages temporarily returned to positive territory as employment and income conditions improved, but turned negative again from January 2025, and personal consumption showed some stagnation against a backdrop of high prices. Looking ahead, downside risks in overseas economies, including the impact of US policy developments such as trade policy, interest-rate conditions in Europe and the US, and the continued stagnation of the Chinese property market, pose risks of downward pressure on Japan's economy. In addition, further price increases, including energy prices, against this backdrop require attention, and uncertainty is increasing.」

「Although Japan's domestic economy is expected to remain on a gradual recovery trend, the outlook is expected to remain uncertain due to downside risks in overseas economies, including concerns about the outlook for the Chinese economy, and risks of further increases in domestic prices through higher import prices caused by foreign-exchange fluctuations and higher energy prices.」

「During the cumulative second quarter under review, Japan's economy was recovering gradually as the movement of people, including inbound visitors, recovered, economic activity moved further toward normalisation, and employment and income conditions improved. However, prices continued to rise and real wages remained negative, while some personal consumption stagnated. Downside risks remained strong and the outlook uncertain due to the impact of global monetary tightening, concerns about the outlook for the Chinese economy, escalating tensions in the Middle East, and the resulting yen depreciation and price increases.」

「During the cumulative first quarter under review, Japan's economy made further progress toward normalisation as the movement of people recovered, with the number of visitors to Japan exceeding pre-pandemic levels in October following the reclassification of COVID-19 as a Class 5 infectious disease, and production recovered as shortages of materials such as semiconductors eased. Meanwhile, tensions continued in the Russia-Ukraine situation and the Middle East, destabilising foreign exchange rates and energy prices. Although the pace of price increases was slowing, prices remained high, and strong downward pressure and uncertainty over the economic outlook continued amid concerns about slowdowns in the US and Chinese economies.」

「Japan's economic outlook is expected to remain uncertain, with strong downward pressure, due to persistently high raw-material and energy prices amid continued geopolitical tensions including those involving Russia and Ukraine, the impact of global inflation and monetary tightening, and further slowing of the Chinese economy.」

「During the cumulative third quarter under review, Japan's economy made further progress toward normalisation of social and economic activity as the movement of people, including inbound visitors, recovered in earnest following the reclassification of COVID-19 as a Class 5 infectious disease. Personal consumption also began to recover gradually. However, although global raw-material and energy prices were beginning to settle, they remained high, and prices continued to rise due in part to another period of yen depreciation, leaving the outlook unstable.」

「During the cumulative second quarter under review, Japan's economy showed signs of recovery in the movement of people, including inbound visitors, and of economic activity returning to normal as restrictions on personal activity were eased and various government support measures were implemented. However, downside risks remained strong and the outlook continued to be unstable due to soaring global raw-material and energy prices and the resulting rapid and substantial increase in prices.」

「As economic activity moved toward normalisation, supported by the spread of vaccinations, the government's launch of nationwide travel assistance and the easing of border restrictions, personal consumption remained on an upward trend. However, the outlook remained uncertain as global prices of raw materials and energy rose sharply due to the Russia-Ukraine situation, import prices rose due to the weaker yen, and inflationary pressures increased. There were also concerns about the impact of declining real income on personal consumption.」

「Although Japan's domestic economy is transitioning to a new lifestyle with COVID-19, it is expected to remain increasingly uncertain due to the impact of global inflation and the weaker yen.」

「During the cumulative third quarter under review, Japan's economy showed signs of improvement as the number of new infections declined due to increased vaccinations. However, conditions remained uneven, including the risk of renewed spread of infections due to the expansion of variants. In addition, the economic outlook remained uncertain due to higher resource prices and other factors resulting from the prolonged Russia-Ukraine situation. Personal consumption was recovering as restrictions on personal activity were eased, but remained extremely challenging as employment and income conditions had not improved.」

「During the cumulative second quarter under review, Japan's economy remained unsettled amid the impact of COVID-19. The number of new infections initially declined and showed signs of recovery as vaccination rates rose, but conditions remained uneven due to the spread of variants. In addition, the prolonged Russia-Ukraine situation raised concerns, and uncertainty continued due to resulting factors such as higher resource prices. Personal consumption recovered somewhat as restrictions on personal activity were eased, but remained challenging as employment and income conditions did not improve.」

「During the cumulative first quarter under review, Japan's economy remained uncertain as COVID-19 continued to have an impact. Although the number of new infections was trending downward as vaccination rates rose, the emergence of variants meant that the timing of the pandemic's containment remained impossible to predict. Personal consumption was beginning to recover somewhat as restrictions on personal activity were eased, but remained challenging as employment and income conditions continued to deteriorate.」

「The Japanese economy continued to be affected by the spread of the novel coronavirus infection during the fiscal year. Economic activity was significantly restricted by repeated declarations of a state of emergency and requests for people to refrain from going out, causing individual behavior and corporate activity to stagnate and leaving the economic outlook uncertain. Personal consumption remained extremely difficult because of deteriorating employment and income conditions accompanying the spread of the infection and declining disposable income following the expiration of the special fixed-sum benefit.」

「Meanwhile, the novel coronavirus infection showed no sign of ending, and economic activity was significantly restricted by the issuance of a state of emergency and requests for people to refrain from going out. Individual behavior and corporate activity stagnated, leaving the economic outlook uncertain.」

「During the six-month period ended in the second quarter, the Japanese economy remained difficult due to the stagnation of economic activity caused by the novel coronavirus infection, although exports and production showed signs of recovery as overseas economies recovered. Meanwhile, the infection showed no sign of ending, and the economic outlook remained uncertain because of measures such as the issuance of a state of emergency and requests for people to refrain from going out. Personal consumption remained uncertain and extremely difficult due to deteriorating employment and income conditions accompanying the spread of the infection and declining disposable income following the expiration of the special fixed-sum benefit.」

「During the three-month period ended in the first quarter, the Japanese economy remained extremely difficult because of the rapid stagnation of economic activity accompanying the spread of the novel coronavirus infection. However, exports and production showed signs of recovery as overseas economies recovered. Meanwhile, there was no clear sign that the novel coronavirus infection was coming under control, and the number of infections was trending upward again, leaving the economic outlook uncertain. Personal consumption remained difficult due to deteriorating employment and income conditions accompanying the spread of the infection and declining disposable income following the expiration of the special fixed-sum benefit.」

「During the fiscal year, the Japanese economy deteriorated rapidly and reached an extremely difficult condition as economic activity in Japan and overseas stagnated and contracted due to the spread of the novel coronavirus infection from the beginning of the year, in addition to the prolonged U.S.-China trade friction and the consumption-tax rate increase.」

「During the nine-month period ended in the third quarter, the Japanese economy remained in an extremely difficult condition, as economic activity declined sharply due to the impact of the novel coronavirus infection from the beginning of the year, in addition to the prolonged U.S.-China trade friction and the consumption-tax rate increase.」

「The Japanese economy remained without a clear outlook during the six-month period ended in the second quarter, as downside risks increased due to the prolonged U.S.-China trade friction, the consumption-tax rate increase and the spread of the novel coronavirus.」

「Although corporate earnings remained at a high level during the three-month period ended in the first quarter, the outlook remained uncertain due to declining exports and production resulting from the prolonged U.S.-China trade friction and the slowdown in overseas economies.」

「The Japanese economy continued on a gradual recovery trend during the fiscal year, supported by improving employment conditions and increased capital investment against a backdrop of generally solid corporate earnings. However, the economic outlook remained uncertain, with weakness in exports and production resulting from the slowdown in overseas economies caused by the prolonged U.S.-China trade friction.」

「The Japanese economy continued its gradual recovery trend, supported by improving employment conditions and increased capital investment against a backdrop of solid corporate earnings. However, the economic outlook remained uncertain, with weakness in exports and production as overseas economies slowed due to factors including U.S.-China trade friction.」

「The Japanese economy continued its gradual recovery trend, although the recovery was slowing, supported by improving employment and income conditions and increased capital investment against a backdrop of solid corporate earnings. However, the economic outlook remained uncertain, with some weakness in exports and production and continued uncertainty in overseas economies.」

「The Japanese economy continued its gradual recovery, supported by improving employment and income conditions against a backdrop of strong corporate earnings and solid capital investment. However, the economic outlook remained uncertain amid concerns about uncertainty in overseas economies and developments in trade issues.」

「The domestic economy is expected to continue its gradual recovery, supported by the ongoing improvement in employment and income conditions and the effects of various government policies. However, attention must be paid to the impact of developments in trade issues on the global economy, uncertainty in overseas economies, volatility in financial and capital markets, and the economic effects of the successive natural disasters.」

「During the nine-month period ended in the third quarter, the Japanese economy generally continued on a gradual recovery trend, supported by a recovery in exports and production against a backdrop of improving overseas economies and a recovery in corporate earnings, although some economic indicators raised concerns about a slowdown.」

「During the six-month period ended in the second quarter, the Japanese economy continued on a gradual recovery trend, supported by a recovery in exports and production against a backdrop of improving overseas economies, higher corporate earnings, and improvements in employment and income conditions.」

「During the three-month period ended in the first quarter, the Japanese economy continued on a gradual recovery trend, driven by growth in exports against a backdrop of recovery in overseas economies and increased capital investment supported by solid corporate earnings.」

「The supermarket industry surrounding the Company continues to face an extremely challenging operating environment, including concerns about stagnant consumption due to consumers' anxiety about the future and a growing preference for frugality driven by a desire to protect household finances, declining demand resulting from population decline and the declining birthrate and aging population, higher labor costs due to increases in the minimum wage and expanded social insurance coverage, labor shortages, and intensifying competition not only from other supermarkets but also from drugstores, convenience stores and other businesses.」

「During the nine-month period ended 31 December, Japan's economy generally continued on a gradual recovery trajectory, supported by government-led economic measures and improvements in production and exports resulting from a recovery in overseas economies. However, personal consumption and capital investment, the pillars of domestic demand, remained weak, and the economic outlook continued to be uncertain.」

「During the six-month period ended 30 September, Japan's economy generally continued to improve gradually, supported by improvements at export-oriented companies as a result of the yen's depreciation since the end of the previous year and the recovery in overseas economies. However, personal consumption, a key pillar of domestic demand, remained weak, and the economic outlook remained uncertain.」

「During the three-month period ended 30 June, Japan's economy showed signs of emerging from stagnation, supported by the government's economic policies and a recovery in exports and production driven by yen depreciation and a recovery in overseas economies. However, personal consumption and capital investment, the two pillars of domestic demand, remained weak, and the economic outlook continued to be uncertain.」

「Although employment conditions and corporate earnings remained firm during the nine-month period ended in the third quarter, the economy generally stagnated due to the yen's appreciation, sluggish exports and restrained capital investment resulting from the slowdown in emerging-market economies, and weak personal consumption caused by declining disposable income.」