The situations in some other emerging market economies are not as encouraging. The Russian government’s decision in mid-August to suspend payments on its domestic debt and devalue the ruble took markets by surprise. Investor flight exacerbated the collapse of prices in Russian financial markets and led to a sharp depreciation of the ruble.
After the spring of 2002, however, the pace of the deterioration moderated, reflecting the recovery in overseas economies. Recently, Japan's economy has almost stabilized as a whole with an increasing upward impetus from exports and production, and an improvement in corporate profits and business sentiment. Employment conditions continue to improve, albeit marginally, with an increase in overtime hours worked and in new job offers.