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Japan's economy surged in Feb 2026, driven by strong manufacturing and services growth, while inflation eased, prompting tax and policy reforms.
Japan's economy showed strong momentum in February 2026, with manufacturing expanding at its fastest pace in nearly four years, driven by robust domestic and overseas demand, particularly in semiconductors and AI-related goods.
The services sector also grew, contributing to a composite PMI at its highest level since May 2023.
Inflation slowed in January, with core consumer prices rising 2.0% year-on-year—the weakest increase in two years—helping ease pressure on the Bank of Japan.
Prime Minister Sanae Takaichi, reappointed after a decisive election win, is expected to propose suspending the consumption tax on food for two years to ease household costs, while advancing plans for a new national intelligence agency and updating Japan’s foreign policy strategy amid regional tensions.
La economía de Japón se disparó en febrero de 2026, impulsada por un fuerte crecimiento de la manufactura y los servicios, mientras que la inflación disminuyó, lo que provocó reformas fiscales y de política.