In order for Japan’s economy to return to a stable growth path, exports must rise, and thus developments in overseas economies hold the key. B. Overseas economies  1. Europe  Economic activity in the euro area deteriorated due to the European debt problem that engulfed Greece, Portugal, and Spain.
More recently, however, the economy has finally  4  BIS central bankers’ speeches  bottomed out and is now showing signs of heading toward a pick-up with an improvement in consumer and business sentiment. Although some countries are still subject to factors that might lead to instability, investors have become less risk-averse and the financial conditions of financial institutions have been improving.