Looking ahead, however, economic activity could be hindered by balance sheet adjustments in the financial sectors of European nations as well as in some governments including that of Greece. Therefore, the pace of economic recovery in Europe is likely to be more moderate than that in the United States. B.
The Japanese economy  The downturn in the Japanese economy following the Lehman shock, with the accompanying steep decline in exports and production, was more severe than that in the United States and Europe. This reflected Japan’s industrial structure, which is susceptible to the effects of world economic deterioration.