Japan’s Comeback: Why the “Lost Decades” May Finally Be Ending

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Japan's economy, plagued by deflation and stagnation for over 30 years, may be turning a corner with the return of inflation and corporate governance reforms.

Market Impact

Market impact analysis based on bullish sentiment with 90% confidence.

Sentiment
Bullish
AI Confidence
90%
Time Horizon
Short Term

Article Context

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For more than 30 years, Japan’s economy was defined by deflation, negative interest rates, and economic stagnation. Now inflation has returned, corporate governance reforms are gaining traction, and investors are taking a fresh look at Japanese markets. We speak with Apollo CEO Marc Rowan, Japan Exchange Group CEO Hiromi Yamaji, and Mireya Solís of the Brookings Institution to examine whether Japan is finally breaking free from the so-called ‘lost decades,’ and what could derail the comeback. (Source: Bloomberg)

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Original article published by Bloomberg on February 21, 2026.
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