U.S. Q1 2026 GDP grows 2 percent, beats forecasts amid inflation and global headwinds

U.S. gross domestic product (GDP) expanded at a 2 percent annualized pace in Q1 2026, the Bureau of Economic Analysis (BEA) reported Thursday in its advance estimate—accelerating from Q4 2025’s 0.5 percent and surpassing analyst forecasts—signaling resilience despite global headwinds like Middle East oil shocks. 

Read more: U.S. inflation reaches 2-year high of 3.3 percent in March as gas price surge impacts broader economy

Key drivers included gains in investment, exports, consumer spending, and government outlays, though rising imports—which subtract from GDP—partly offset the uptick.

The gross domestic purchases price index eased to 3.6 percent from 3.7 percent last quarter. Personal consumption expenditures (PCE) inflation hit 4.5 percent, with the core PCE (stripping food and energy) at 4.3 percent—highlighting persistent pressures amid energy volatility.