The Bank expects that, from the latter half of fiscal 2009, global financial markets will regain stability and overseas economies will move out of their deceleration phase. However, given the current state of the global economy, it is inevitable that uncertainties about the outlook are great. II. Economic and financial developments in Japan  A.
The current state of and outlook for Japan's economy  Now I will discuss economic and financial developments in Japan. Japan's economy started to decelerate from the spring of last year, and since the autumn exports and production have been experiencing one of the sharpest drops ever.