Inflationary and Interest Rate Pressures

「Regarding international affairs, a limited agreement was reached on certain US tariff measures, but tariff levels on major items remain high, and uncertainty continues for export-related companies. In the Middle East, geopolitical risks have repeatedly eased and then intensified again, and risks of volatility in crude oil and energy prices have not been eliminated. Together with tensions with China, these international political and economic factors could heighten uncertainty about the outlook for the global economy and affect the stability of Japan's exporters and related supply chains.」

「However, the tariff policies accompanying the inauguration of the US president have raised concerns about their impact on countries including China, while geopolitical risks in Ukraine and Israel, among others, mean that uncertainty persists.」

「Meanwhile, in Japan, a minority-party government was established following the general election, while overseas, policy changes are anticipated ahead of the inauguration of a second Trump administration. The outlook therefore remains uncertain, including due to geopolitical risks.」

「The outlook remains uncertain due to factors including monetary tightening by the Bank of Japan, restrained consumption resulting from higher prices, trends in resource prices, changes in the global economy associated with the US presidential election, and geopolitical risks such as the situations in Ukraine and Israel and Palestine.」

「During the first six months of the fiscal year under review, economic activity in Japan continued to normalize following the COVID-19 pandemic, and the economy was gradually recovering as domestic demand provided support. However, the outlook remained uncertain due to factors including restrained consumption resulting from higher prices, the weaker yen, trends in resource prices, and geopolitical risks such as the situations in Ukraine and Israel and Palestine.」

「During the quarter under review, Japan's economic growth had recovered to pre-pandemic levels, and consumption driven by inbound demand remained firm. However, the outlook remained uncertain due to concerns about an economic slowdown in the United States and Europe, higher labor costs resulting from wage increases, exchange-rate fluctuations, and surging raw material prices.」

「The outlook remains uncertain due to factors including higher resource prices resulting from the situation in Ukraine, the accelerating depreciation of the yen, and rising prices.」

「The outlook remains uncertain due to factors including labor shortages, trends in resource prices, and geopolitical risks, particularly the situation in Ukraine.」

「Meanwhile, the outlook remained uncertain due to geopolitical risks, including the weaker yen, trends in resource prices, the situation in Ukraine, and China's zero-COVID policy.」

「During the fiscal year under review, Japan's economy was beginning to see the spread of the novel coronavirus subside, raising expectations for economic recovery, including a recovery in inbound demand. However, uncertainty about the outlook continued due to surging raw material prices triggered by the crisis in Ukraine, exchange-rate fluctuations resulting from the interest-rate differential between Japan and the United States, and the sluggish Chinese economy.」

「As pressure for higher prices and interest rates intensifies against a backdrop including tight supply and demand」