The minutes from the July meeting of the Bank of Japan (BoJ) reveal that the weakness in the emerging economies was often mentioned as an influential, although mostly negative, force in the economic developments around the world.
According to the minutes, released on Tuesday, "the slowdown in emerging economies" hampered momentum in the U.S. economic recovery. The Chinese economy and those of many ASEAN countries was described as "subdued," while Russian and Brazilian were seen bottoming out. The inflation in many of the emerging markets was seen as high.
The BoJ said in its report from July 26-28 meeting that the appointment of the new prime minister in the United Kingdom would help abate the uncertainty after the Brexit referendum.
The Japanese economy was seen as continuing along a "moderate recovery trend, although exports and production had been sluggish, due mainly to the effects of the slowdown in emerging economies." On other fronts, like private consumption, employment, machinery orders, and even inflation, the Japanese economy showed a resilience.
Image: EPA / Kimimasa Mayama
