latest news in economy
Japan Narrowly Escapes Recession as Domestic Spending Counters Export Decline
Tokyo, Monday, 16 February 2026.
Japan narrowly avoided a technical recession in the final quarter of 2025, posting a fragile 0.2% annualized growth rate reported this Monday, February 16, 2026. While private housing rebounded significantly and AI-driven demand boosted capital expenditure by 0.2%, these domestic gains were nearly erased by a sharp 1.1% drop in exports, exacerbated by ongoing tariff uncertainties under the Trump administration. The most intriguing divergence lies in the data: while real economic activity remains anemic, nominal GDP surged by an annualized 2.3%, driven by inflation and corporate profits. This disconnect highlights the precarious nature of Japan’s recovery, which fell significantly short of the market’s 1.6% growth expectation.
U.S. Productivity Growth Doubles as AI Enters Economic Harvest Phase
Palo Alto, Monday, 16 February 2026.
Analysis reveals 2025 productivity growth hit 2.7%, nearly doubling the prior decade’s average. This surge signals the economy has officially transitioned from AI experimentation to structural utility.
MIT Study Uncovers Hidden Infrastructure Risks in Mainstream Stablecoin Markets
Cambridge, Monday, 16 February 2026.
With monthly stablecoin payments reaching $2.1 trillion, MIT researchers warn of critical “hidden plumbing” vulnerabilities persisting in digital asset infrastructure despite the recent GENIUS Act.
Middle-Class Income Gap Fuels $4.7 Billion Plasma Sales Boom
Washington, Saturday, 14 February 2026.
Persistent inflation has created a startling shadow economy where middle-class households now rely on selling blood plasma to bridge financial gaps. In a telling shift, Americans earned an estimated $4.7 billion from plasma sales last year, driving collection centers to aggressively expand into suburban neighborhoods and college towns.
Retail Sentiment Diverges from Market with Historic $176 Million Software Bet
New York, Saturday, 14 February 2026.
Defying a 33% sector downturn, retail investors channeled a record $176 million into the IGV ETF last month, marking an unprecedented divergence between individual sentiment and market performance.
January Inflation Slows to 2.4%, Yet Sticky Service Costs Signal Summer Rate Cut Delay
Washington D.C., Saturday, 14 February 2026.
The January 2026 Consumer Price Index (CPI) offers a mixed signal for the U.S. economy, rising just 0.2% for an annual rate of 2.4%—slightly below economists’ expectations. While falling gasoline prices and a significant 7% drop in egg costs provided consumer relief, underlying inflationary pressures remain stubborn. Core inflation, which excludes volatile food and energy sectors, rose 0.3% month-over-month, keeping the annual core rate at 2.5%. This persistence in service-sector costs suggests the Federal Reserve will see little urgency to resume interest rate cuts immediately. Although the headline numbers mark the slowest inflation pace since 2021, the “sticky” nature of core prices indicates the path to the Fed’s 2% target remains bumpy. Consequently, markets have shifted expectations for monetary easing, now looking toward June for the next potential rate cut rather than an immediate reprieve.
Strong January Job Gains Clash With Rising AI Disruption Fears
New York, Saturday, 14 February 2026.
U.S. markets are currently navigating a complex paradox where macroeconomic resilience meets sector-specific anxiety. While the January employment report delivered a surprise 130,000 new jobs—shattering expectations and lowering unemployment to 4.3%—investor sentiment remains fragile. This volatility stems from a growing fear that artificial intelligence is poised to dismantle traditional industries, overshadowing positive data on easing inflation. Crucially, the labor market’s apparent vigor is uneven, with gains heavily concentrated in healthcare, masking weakness in other sectors. This divergence between solid economic data and existential tech-sector dread has created a turbulent investment landscape, suggesting that while the economy isn’t breaking, the drivers of future growth are fundamentally shifting.