U.S. GDP Rises 2.0% in Q1 2026, Boosted by AI and Government Spending but Offset by Import Surge

S. 0% in the first quarter of 2026, adjusted for inflation, according to the Bureau of Economic Analysis. This growth included contributions from government spending, trade, and changes in inventories.

Investments in artificial intelligence supported the expansion during the period. Overall GDP growth was aided by a bounce-back in government spending and massive spending on AI, though it was restrained by a spike in imports.

8 trillion in the first quarter of 2026. 0% real GDP growth in the first quarter of 2026 represents inflation.

This measure excludes government consumption expenditures, government gross investment, exports, imports, and changes in inventories.

Jerome Powell cites the real final sales to private domestic purchasers figure in his press conferences as a measure of the private domestic economy.

U.S. economy. 4% adjusted for inflation. Spending on goods was roughly unchanged in the first quarter of 2026, adjusted for inflation.

2%, both adjusted for inflation. S.

0% GDP growth.

This category does not include interest payments or transfer payments directly to consumers.

U.S. economy. Federal government spending collapsed during the shutdown in the fourth quarter of 2025 and partially bounced back in the first quarter of 2026.

3% annualized in the first quarter of 2026. 17 percentage points to GDP growth.

About 60% of government consumption and investment spending is from state and local governments, while federal government spending accounts for about 40%. The surge in imports was on electronic products, including semiconductors as part of the AI data center boom.

In February 2026, the Supreme Court invalidated a big part of the tariffs. 6% in the first quarter of 2026. 2%.

S. 6% at the end of the first quarter of 2026.

S. 5% annual rate in the years between the Great Recession and the pandemic, excluding recessions.

2% annual rate.