Yen Appreciation and Stock Price Declines Accompanying the UK's Withdrawal from the EU and a Slowdown in Emerging-Market Economies

「Downward pressure on personal consumption remains strong. In addition to the sharp rise in crude oil and related product prices accompanying heightened tensions in the Middle East, concerns over shortages of supplies are increasing, and the outlook remains uncertain.」

「At the same time, the outlook remained uncertain due to persistently high costs resulting from the yen's sustained depreciation and geopolitical risks, as well as a serious labor shortage.」

「During the interim accounting period, Japan's economy remained on a path of moderate recovery, supported by improvements in employment and income conditions and increased inbound demand. However, the outlook remained uncertain due to developments in U.S. trade policy, the impact of unstable international conditions including the situation in the Middle East, and stagnant personal consumption resulting from rising domestic prices.」

「During the fiscal year, Japan's economy remained on a path of moderate recovery as the containment of COVID-19 increased demand for going out and inbound tourism. At the same time, various costs, including raw material prices and labor costs, remained elevated due to the prolonged situation between Russia and Ukraine, heightened tensions in the Middle East, and the prolonged depreciation of the yen, leaving the outlook for the economy uncertain.」

「During the cumulative third quarter period, the normalization of social and economic activity progressed as restrictions on personal conduct were eased following the reclassification of COVID-19, and the economy showed signs of a moderate recovery. However, the outlook remained uncertain due to soaring resource, energy and raw material prices resulting from the prolonged situation in Ukraine, global monetary tightening aimed at curbing high inflation, and the impact of rising prices associated with sharp exchange-rate fluctuations.」

「During the cumulative second quarter period, the normalization of social and economic activity progressed as restrictions on personal conduct were eased following the reclassification of COVID-19, and the economy showed signs of a moderate recovery. However, the outlook remained uncertain due to soaring resource, energy and raw material prices resulting from Russia's invasion of Ukraine and other factors, global monetary tightening aimed at curbing high inflation, and the impact on the domestic economy of the yen's depreciation and rising prices.」

「During the cumulative first quarter period, the economy showed signs of a moderate recovery as restrictions on economic activity related to COVID-19 were eased. However, the outlook remained uncertain due to soaring energy and raw material prices, exchange-rate fluctuations, the prolonged situation in Ukraine, and the downturn in overseas economies resulting from interest-rate hikes by the United States and European countries.」

「During the cumulative third quarter period, restrictions on social and economic activity were gradually eased despite the impact of COVID-19, and the economy showed signs of a moderate recovery. However, the outlook for the economy remained uncertain due to the renewed spread of COVID-19, shortages of raw material supplies caused by the prolonged situation in Ukraine and elsewhere, and sharp exchange-rate fluctuations and soaring prices against the backdrop of rising resource prices and global monetary tightening.」

「However, the outlook for the economy remained uncertain due to the renewed spread of infections caused by new variants, soaring energy and raw material prices resulting from the prolonged situation in Ukraine, the rapid depreciation of the yen against the backdrop of global monetary tightening, and soaring prices.」

「During the cumulative first quarter period, the severe situation caused by COVID-19 was beginning to ease and economic activity was gradually showing signs of recovery. However, the outlook for the economy remained uncertain due to heightened international tensions following Russia's invasion of Ukraine, the rapid depreciation of the yen, and soaring prices for a wide range of raw materials, supplies and crude oil.」

「The rapid spread of infections caused by an outbreak of a new variant led to priority preventive measures being imposed on 34 prefectures in January 2022. In addition, concerns over geopolitical risks arising from the situation between Russia and Ukraine, as well as concerns over soaring fuel and raw material prices, left the situation extremely uncertain.」

「After 1 October, when the state of emergency and priority preventive measures were lifted nationwide, corporate earnings and capital investment showed some signs of recovery, partly due to the easing of restrictions on social and economic activity as vaccinations progressed. However, the outlook for the economy remained unpredictable due to the emergence of new variants and other factors.」

「During the cumulative second quarter period, Japan's economy remained in a severe situation as the impact of the spread of COVID-19, which had continued since the previous year, persisted, while repeated declarations of a state of emergency and the application of priority preventive measures significantly restricted personal consumption and economic activity. Although the promotion of COVID-19 vaccinations and a recovery in the economies of countries where vaccinations had progressed ahead of Japan are expected, there were still no signs that COVID-19 was moving toward containment, and the outlook remained uncertain.」

「During the cumulative first quarter period, Japan's economy saw demand decline, particularly personal consumption, as the renewed spread of COVID-19 led to the application of priority preventive measures in affected areas and the declaration of a third state of emergency. The outlook for the economy also remained uncertain and severe, as restrictions were imposed on economic activity, including an extension of the state of emergency.」

「The renewed spread of infections led to a second state of emergency being declared in 11 prefectures and metropolitan areas in January 2021, leaving the outlook for the containment of COVID-19 extremely uncertain.」

「During the cumulative third quarter period, Japan's economy deteriorated rapidly due to the spread of COVID-19 and the declaration of a state of emergency in response, and remained in an extremely severe situation. After the state of emergency was lifted, economic activity gradually resumed and showed some signs of recovery. However, the spread of infections again led to a second state of emergency being declared in 11 prefectures and metropolitan areas in January 2021, leaving the outlook for the containment of COVID-19 extremely uncertain.」

「During the cumulative period of the second quarter under review, the spread of COVID-19 and the declaration of a state of emergency in response to it severely restricted social and economic activity, causing the economy to deteriorate rapidly and creating a challenging situation, a sharp reversal from its gradual recovery trend. Although economic activity resumed after the state of emergency was lifted, no end to the spread was in sight, and the economic outlook remained extremely uncertain.」

「During the cumulative period of the first quarter under review, the global spread of COVID-19 restricted social and economic activity in Japan and overseas, causing the economy to deteriorate rapidly and significantly and creating an extremely challenging situation. Amid concerns that the deterioration could be prolonged, no end to the spread was yet in sight, and the outlook remained extremely uncertain.」

「During the fiscal year, Japan's economy generally remained firm despite uncertainty, as high corporate earnings and stable employment conditions offset sluggish exports resulting from the slowdown in the global economy. However, the economic environment became increasingly unstable with the emergence and spread of COVID-19.」

「The uncertain outlook continued due to the effects of the consumption tax increase on private consumption, natural disasters such as typhoons and the escalation of trade friction between the US and China.」

「Meanwhile, uncertainty about the outlook intensified due to the increasing risk of escalating US-China trade friction, uncertainty regarding overseas economic trends and policies, and the effects of the consumption tax increase.」

「During the cumulative period of the first quarter under review, Japan's economy remained on a gradual recovery path as employment and income conditions continued to improve. However, uncertainty about the outlook for the economy intensified due to the impact of prolonged US-China trade friction on the global economy, concerns about a slowdown in the global economy, including China, and the effects of the consumption tax increase scheduled for October this year.」

「Meanwhile, the outlook remained uncertain due to the policy management of the US administration, rising protectionism, the expansion of US-China trade friction and the effects of volatility in the financial and capital markets.」

「Meanwhile, the outlook for the economy is expected to remain uncertain due to the increasing risk of escalating trade friction stemming from the US's hard-line trade policies and the occurrence of natural disasters such as torrential rains, typhoons and earthquakes.」

「Meanwhile, the outlook remained difficult to predict due in part to US-China trade friction and uncertainty surrounding US policy management, and this situation is expected to continue.」

「During the fiscal year, private consumption in Japan remained on a recovery path amid improvements in employment and income conditions and rising stock prices. However, the outlook remained uncertain due to uncertainty in overseas economies resulting from geopolitical risks and policy developments in Europe and the US, as well as volatility in the financial and capital markets.」

「The challenging business environment has continued, partly due to the effects of adverse weather, including repeated large typhoons. In addition, the global economy faces many sources of concern, including future political and economic developments in the US and the European Union, concerns about slower growth in China and emerging-market economies, and geopolitical risks in the Middle East and East Asia. The outlook therefore remains uncertain.」

「During the cumulative period of the second quarter under review, business sentiment in Japan improved against a backdrop of robust overseas economies and a recovery in domestic consumption. The economy remained on a gradual recovery path, driven by increased corporate capital investment and some improvement in income conditions. Meanwhile, stagnation continued due to uncertainty in overseas politics, including rising geopolitical risks in Asia, and consumers' preference for saving amid concerns about the future, leaving private consumption still lacking strength.」

「However, the outlook for the economy remained uncertain amid heightened uncertainty resulting from policy changes by the US administration and their impact on the global economy, the UK's withdrawal from the EU, slowing growth in emerging-market economies and the emergence of geopolitical risks worldwide. Although domestic private consumption showed signs of recovery, no signs of a full-fledged improvement were evident, and the economy remained in an uncertain situation.」

「During the fiscal year, Japan's economy remained on a gradual recovery path as employment and income conditions improved under the fiscal and monetary policies of the government and the Bank of Japan. However, rapid fluctuations in foreign-exchange and stock markets resulting from increasing instability overseas, together with the effects of adverse weather, weakened domestic demand and left the outlook for corporate earnings uncertain.」

「Meanwhile, the economic outlook remained uncertain due to increasing instability in stock prices and foreign-exchange markets resulting from concerns about a slowdown in the global economy, including China, the UK's withdrawal from the European Union and concerns about policy developments following the US presidential election.」

「However, uncertainty about the outlook remained due to the rapid appreciation of the yen and decline in stock prices resulting from the UK's withdrawal from the European Union and other factors, as well as the slowdown in emerging-market economies, including China.」