Geopolitical risks stemming from developments in foreign administrations and the situation in North Korea

「In addition to geopolitical risks, including the increasingly tense situation in the Middle East, uncertainty surrounding the economic outlook remains high due to stagnant consumption caused by continued inflation, led by energy prices, and rising interest rates as the Bank of Japan moves into a rate-hiking phase.」

「During the current interim consolidated accounting period, the Japanese economy remained on a moderate recovery trend. However, uncertainty surrounding the economic outlook remained high as uncertainty about the future increased due to US tariff policy and an unstable international situation, while consumption stagnated as rising prices, led by energy prices, continued.」

「Meanwhile, unexpected changes in the business environment, including the prolonged instability of the geopolitical situation, global price increases and the resulting moves toward monetary tightening, sharp exchange-rate fluctuations and developments in US tariff policy, have had a significant impact on economic activity and people's lives. There are concerns that the outlook will remain uncertain across a wide range of areas.」

「Meanwhile, the outlook remained uncertain due to the emergence of geopolitical risks, including the prolonged conflict in Ukraine and conflict and unrest in the Palestinian territories, as well as soaring prices for energy and other necessities such as food, the depreciation of the yen and interest-rate policies in various countries.」

「Meanwhile, the outlook remained uncertain due to the emergence of geopolitical risks, including the prolonged conflict in Ukraine and conflict and unrest in the Palestinian territories, as well as soaring prices for energy and other necessities such as food, the depreciation of the yen and interest-rate policies in various countries.」

「Meanwhile, the outlook remained uncertain due to the emergence of geopolitical risks, including the prolonged conflict in Ukraine and conflict and unrest in the Palestinian territories, as well as soaring prices for energy and other necessities such as food.」

「Meanwhile, the outlook remained uncertain due to the emergence of geopolitical risks, including the prolonged conflict in Ukraine and conflict and unrest in the Palestinian territories, as well as soaring prices for energy and other necessities such as food.」

「Amid continued global monetary tightening and other factors, there were concerns about a downturn in overseas economies resulting from prolonged conflict in Ukraine, which drove up global resource and raw-material prices, as well as semiconductor shortages. The outlook remained uncertain due to the effects of rising prices, supply-side constraints and volatility in financial and capital markets, among other factors.」

「During the second quarter of the current fiscal year, the Japanese economy showed signs of recovery as measures to address COVID-19 and normalize economic and social activity progressed, supported by the effects of various policies. However, amid continued global monetary tightening and other factors, concerns that the prolonged situation in Ukraine, semiconductor shortages and a downturn in overseas economies could hinder the economic recovery remained. The outlook also remained uncertain due to the effects of rising prices, supply-side constraints and volatility in financial and capital markets, among other factors.」

「During the first quarter of the current fiscal year, the Japanese economy showed signs of recovery as measures to address COVID-19 and normalize economic and social activity progressed, supported by the effects of various policies. However, there were concerns that a downturn in overseas economies against a backdrop of global monetary tightening and other factors could hinder the economic recovery. The situation remains unpredictable as uncertainty about the outlook increases.」

「However, the outlook remains uncertain due to the impact of soaring energy prices resulting from Russia's invasion of Ukraine and the economic sanctions imposed on Russia by governments around the world, among other factors.」

「Regarding economic conditions from the second quarter of the current fiscal year onward, the number of infections from the Omicron variant, which has constituted the sixth wave since January 2022, has increased significantly. Although quasi-emergency measures to prevent the spread of disease have been applied, further increases in infections are expected to be unavoidable. The Company recognizes that, depending on circumstances, it would be difficult to eliminate these effects completely through the efforts of the Group alone.」

「Personal consumption has shown some stagnation as requests for voluntary restraint have been strengthened and consumer sentiment has deteriorated. Close attention is required to downside risk to the global economy resulting from changes in the future spread of infections caused by new variants, and uncertainty about the outlook has increased. The situation remains unpredictable.」

「Regarding economic conditions from the end of the current fiscal year through the future, the Company expects the holding of the Tokyo Olympic and Paralympic Games, progress in vaccination rates and the gradual easing of restrictions on economic activity. At the same time, the outlook remains uncertain due to soaring resource prices and the spread of new variants, among other factors, and the Company recognizes that, depending on future developments, it would be difficult to eliminate these factors completely through the efforts of the Group alone.」

「However, since mid-March 2021, a renewed increase in infections, believed to represent a fourth wave of COVID-19, has become more serious. Personal consumption is expected to decline as requests for voluntary restraint are further strengthened and consumer sentiment deteriorates. Depending on changes in the future spread of infections, downside risk to the economy could further increase uncertainty about the outlook, and the situation remains unpredictable.」

「During the six-month period ended 30 September, the Japanese economy remained in a difficult situation due to the worldwide spread of COVID-19. However, overall economic activity showed signs of recovery as infection-control measures were implemented in Japan and overseas. Personal consumption, meanwhile, showed some stagnation as requests for voluntary restraint were strengthened and consumer sentiment deteriorated. Close attention is required to the downside risk to the global economy resulting from changes in the future spread of infections, and uncertainty about the outlook has increased. The situation remains unpredictable.」

「During the three-month period ended 30 June, there were no new risks that management recognizes as having the potential to materially affect the financial position, operating results or cash flows of the consolidated companies, and no material changes to the business risks described in the annual securities report for the previous fiscal year.」

「Overseas economies also remained increasingly uncertain, as the risk of a global economic slowdown rose amid financial market turmoil caused by worsening US-China trade friction and the impact of the UK's withdrawal from the EU, as well as the worldwide spread of COVID-19.」

「The global economy remained increasingly uncertain, with the risk of a slowdown rising from February onward as the worldwide spread of COVID-19 added to trade friction stemming from US-China trade policies and the impact of the UK's withdrawal from the EU.」

「During the cumulative second quarter under review, the Japanese economy continued to recover moderately, supported by improvements in corporate earnings and employment conditions. However, the outlook remained uncertain amid increasing uncertainty in overseas economies, including the impact of consumer sentiment and personal consumption following the consumption tax rate increase, trade friction based on US-China trade policies, and the impact of the UK's withdrawal from the EU.」

「However, the outlook remained uncertain because of damage caused by large typhoons, torrential rains, earthquakes and other natural disasters occurring across Japan, as well as increasing uncertainty in overseas economies, including trade friction based on US-China trade policies and heightened tensions in the Middle East and on the Korean Peninsula.」

「Meanwhile, concerns remain about downside risks to the global economy and their impact on the Japanese economy, including slower economic growth in China and a contraction in trade against the backdrop of US-China trade friction, and the outlook remains uncertain.」

「During the cumulative first quarter under review, the Japanese economy continued to recover moderately, supported by improvements in corporate revenue and employment conditions. However, the outlook remained uncertain because of damage caused by large typhoons, torrential rains, earthquakes and other natural disasters occurring across Japan, as well as increasing uncertainty in overseas economies, including trade friction based on US-China trade policies.」

「However, attention must be paid to the effects of volatility in financial and capital markets and uncertainty in overseas economies, and the outlook remains uncertain.」

「However, attention must be paid to the effects of volatility in financial and capital markets and uncertainty in overseas economies, and the outlook remains uncertain.」

「During the cumulative second quarter under review, the Japanese economy continued to recover moderately, supported by continued improvements in employment and income conditions. However, the outlook remained uncertain amid uncertainty surrounding overseas economic conditions and policies and heightened geopolitical risks in East Asia and the Middle East.」

「Uncertainty associated with developments in overseas governments, particularly the United States, and heightened geopolitical risks arising from the situation surrounding North Korea resulted in continued uncertainty about the outlook.」