Washington posts fastest GDP growth in the U.S. to start 2026

Washington’s economy grew faster than any other state’s in the first three months of 2026, fueled largely by its outsized technology sector, according to new data from the U.S. Bureau of Economic Analysis.

The state’s gross domestic product (GDP) expanded at an annualized rate of 4.5% during the first quarter, more than double the national rate of 2.1%. The figures, released Thursday as part of the bureau’s third estimate of first-quarter growth, ranked Washington first among all 50 states and the District of Columbia.

The strong showing marks a sharp turnaround for a state that had stumbled in recent quarters. Washington ranked No. 45 among states for GDP growth in the third quarter of 2025 and No. 41 in the fourth quarter, according to the bureau’s data.

WA’s tech-heavy economy powered the first-place finish

Information was the leading contributor to the increase in Washington, the bureau said. The sector includes software, cloud computing, and digital services — industries heavily concentrated in the Seattle region, home to companies such as Microsoft and Amazon. Because of that concentration, Washington’s economic performance tends to rise and fall more sharply with the technology sector than most other states.

Nationally, real GDP increased at an annual rate of 2.1% in the first quarter, the bureau said in its third estimate. That figure was revised up by half a percentage point from the previous estimate, primarily reflecting a downward revision to imports, which are subtracted in the calculation of GDP, that was partly offset by a downward revision to consumer spending. In the fourth quarter of 2025, real GDP increased 0.5%.

The contributors to the first-quarter increase nationally were investment, exports, government spending, and consumer spending, the bureau said. From an industry perspective, the increase reflected gains of 7.5% in government, 4.5% in private goods-producing industries, and 0.8% in private services-producing industries.

Washington was one of 46 states, along with the District of Columbia, where real GDP rose during the quarter. Growth ranged from 4.5% in Washington to a 1.6% decline in South Dakota, where agriculture, forestry, fishing, and hunting were the leading drag. The economy remained unchanged in Delaware.

Manda Factor is the host of “Seattle’s Morning News” on KIRO Newsradio. Follow Manda on X and email her here. 

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