world
US Q1 2026 GDP Grows 2%; US and Israel Begin War With Iran
The U.S. economy expanded at a 2% annualized rate in the first quarter of 2026, boosted by consumer spending and other factors, as the war with Iran entered its ninth week. Euro zone growth slowed to 0.1% with inflation rising to 3% in April. Unilever reported strong sales and plans to raise prices due to war-related costs.
vanguardngr.comAudio version
Tap play to generate a narrated version.
The United States and Israel launched a war with Iran in the first quarter of 2026, a conflict now in its ninth week as of April 30, 2026. U.S. gross domestic product registered a 2% annualized rate in the January-through-March period of 2026, according to data released by the Commerce Department on Thursday, April 30, 2026.
5% annualized rate in the fourth quarter of 2025. U.S. GDP is adjusted for seasonal swings and inflation.
The economic growth in the first quarter of 2026 was boosted by consumer spending, business investment, higher exports and government outlays. The prior quarter had the longest government shutdown on record.
U.S. Economy strengthened in the first three months of 2026. The first-quarter figure shows the economy headed into the Iran war on strong footing, boosted by bigger tax returns that helped offset the initial uptick in prices at the pump, according to CNN reporting.
So far, most companies have also reported robust first-quarter earnings, and while the Iran war initially spooked investors, the stock market eventually rebounded, with major indexes now at or near record highs, CNN reported.
But the Middle East conflict is now in its ninth week, and economists broadly agree that the longer it lasts, the more damage it will inflict on the US economy. It’s also prompting the Federal Reserve to delay any further rate cuts, with global oil prices still firmly above $100 a gallon, which is keeping US gas prices elevated, according to CNN.
“As long as the economy continues to grow and companies are able to grow earnings, we can see higher stock prices even in the face of higher energy prices and inflation,” Chris Zaccarelli, chief investment officer for Northlight Asset Management, said in an analyst note Thursday.
“However, the longer the war drags on, the more investors will grow nervous and we could see some pullbacks as fears ebb and flow,” Zaccarelli added. 1% in the first quarter of 2026, with the data released on Thursday, April 30, 2026. 9% in the month before March 2026.
