On this point, in emerging economies, while their U.S. dollar-denominated external debt has expanded over the past decade, a number of negative factors have been observed, such as the rise in U.S. interest rates, depreciation of these economies' currencies that would have been used for the repayment of debts, and deceleration of the economy as a result of interest rate hikes aimed at containing inflation and defending the currencies.
Although the effect on the global economy seems to be limited at this point, it is important to keep a close eye on developments. B. Current Situation and Outlook for Japan's Economy I will now discuss the economic situation in Japan.