While overseas economies have been remaining in a deceleration phase, recently, a silver lining has started to be seen mainly in the United States and China. Developments in the European economy By region, the European economy continues to be in a moderate recession phase with continued fiscal austerity and tight financial conditions on the back of a debt problem.
Deterioration in business and household sentiment has spread not only to southern European countries that have been burdened with the debt problem but also to core European countries, including Germany and France. As a result, firms’ business fixed investment has decreased and weakness in private consumption, particularly of durable goods like automobiles, has become pronounced.