Impact of the Euro area crisis on Japan and other developed countries through financial channels  The euro area crisis has been adversely affecting the global economy mainly through trade and financial channels.
Japan has also been affected through sluggish exports over the past few months owing to both a direct and indirect decline in exports to Europe through the supply-chain network centered on mainland China. The lower-than-expected export activities were one of the factors considered when the Bank of Japan (BOJ) made a downward adjustment of the economic outlook at the Monetary Policy Meeting last month.