Key events
Switzerland returns to growth
Newsflash: Switzerland has also escaped recession, despite the economic damage caused by US tariffs.
Swiss GDP expanded by 0.2% in the fourth quarter of 2025, a new estimate shows. That follows a 0.5% contraction in the third quarter of 2025, when the US trade war hurt its exporters.
Switzerland’s State Secretariat for Economic Affairs says that “growth in the services sector was muted, while the industrial sector stagnated,” in Q4, adding:
According to provisional results, the Swiss economy grew by 1.4% in 2025 overall, following 1.2% the previous year.
This is well below Switzerland’s average economic growth (1.8% since 1981). The challenging international environment slowed the export?oriented industry.
By contrast, the services sector grew at an above?average rate by historical standards
President Trump hit Switzerland with 39% tariffs under his trade war, before agreeing to lower them to 15% in November.
Japan has slotted in at the bottom of the G7 growth table, along with the UK:
With Canada and the US yet to report their GDP data for October-December, here’s what we know so far:
Competition among UK house sellers at 11-year high
Competition among UK house sellers is running at an eleven-year high, giving buyers more opportunities and keeping prices pegged this month.
Property portal Rightmove is reporting this morning that the average asking price for a newly listed homes dipped by just £12 this month, to £368,019.
And with more houses on the marker – after a record number of early-bird new sellers coming to market sinceBoxing Day and in January – potential buyers have plenty of choice.
Rightmove says the high number of homes for sale is continuing to benefit buyers, giving them more choice and more power to negotiate.
And with last November’s budget behind us, net confidence among buyers and sellers in January has risen back to its highest level since September 2025, Rightmove reports.
Should the Bank of England cut interest rates at its next meeting, in March, that could give borrowers another lift, as the peak spring selling season approaches.
According to Rightmove, the average asking price is the same as a year ago, after that £12 shuffle lower.
That’s despite a record asking price increase for the time of year in January, which means prices are up by 2.8% since December
As the market is “still very price-sensitive,” sellers need to pitch their properties realistically, says Colleen Babcock, property expert at Rightmove:
“Virtually flat prices in February really needs to be viewed alongside what happened in January.
After the prolonged uncertainty in the run up to the late November Budget, plus the usual Christmas slowdown, we saw activity pick up again from Boxing Day. Many sellers, some of whom had been holding back because of the Budget, came to market in early 2026 with renewed confidence, which helped to drive that bumper January price rise.
But the market fundamentals haven’t changed. There are still lots of homes for sale, and buying activity isn’t as strong as this time last year, when many buyers were rushing to move before the stamp duty increase in England. So in February, sellers have taken a more cautious approach by holding onto January’s gains rather than pushing prices higher, at a time when competition is high and the market is still very price-sensitive.”
After a bullish January, sellers overall think better of asking for more as increased competition stifles growths. Annually prices remained flat but many sellers tiptoed higher in February hoping end of year budget restraints being now removed would release pent up demand.… pic.twitter.com/PQbemcjmJN
— Emma Fildes (@emmafildes) February 16, 2026
Japan’s stock market dips
Shares fell in Tokyo as investors digest today’s weaker-than-expected growth report.
The Nikkei 225 index dipped by 0.24%, while the broader Topix shed 0.8%.
Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management, said:
“I figured the GDP figures would be treated as past figures, but seeing the Nikkei average struggling to gain, there may be some slight impact.”
Introduction: Japan avoids recession with weak return to growth
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
Japan has escaped falling into recession, just, with a weak return to growth that highlights the need for punchy measures from its new government to spur the economy on.
Japanese GDP expanded by just 0.1% in October-December, fresh data from Japan’s Cabinet Office shows, missing forecasts of 0.4% growth.
That follows a contraction of 0.7% in July-September, and means Japan has avoided a technical recession – two negative quarters of growth in a row.
Private consumption drove the expansion, while exports and public spending were weak.
Shinichiro Kobayashi, chief economist at Mitsubishi UFJ Research and Consulting, explained:
“Personal consumption showed resilience, but whether this resilience can be sustained will depend on whether price relief measures will make an impact and whether real wages will turn positive.”
Japan’s economy has been hurt by Donald Trump’s trade war, which increased tariffs on Japanese goods entering the US.
The diplomatic row between Beijing and Tokyo over the security of Taiwan also weighed on the economy, with Chinese tourism to Japan almost halving.
The data comes just a week after prime minister Sanae Takaichi won a landslide election victory, having promised “responsible and proactive fiscal policies”.
Takaichi was due to meet with Bank of Japan governor Kazuo Ueda, in their first bilateral meeting since the election.
Last November, Takaichi unveiled a massive ¥21.3tn (£100bn) stimulus package in an effort to spur economic growth and protect households from the rising cost of living. Further measures may be needed….
The agenda
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