MYNORTHWEST NEWS

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

Jun 30, 2026, 12:55 PM

Washington GDP growth...

People use a common space outside of The Spheres at the Amazon.com Inc. headquarters. (Photo: David Ryder, Getty Images)

(Photo: David Ryder, Getty Images)

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

MyNorthwest News

Seattle City Light...

Frank Lenzi

Council approves 9.5% Seattle City Light rate hikes, puts transit tax on November ballot

Seattle City Light customers are about to see their monthly electricity bills go up.

8 hours ago

tumwater...

James Lynch

5-month-old dies after vehicle catches fire in Tumwater driveway with three children inside

An infant was killed in a vehicle fire in Tumwater Tuesday.

10 hours ago

world cup (2)...

James Lynch

17 arrested, 12 guns seized: inside Operation Red Card, the quiet crackdown behind Seattle’s World Cup

Seattle police and federal agents are revealing details about Operation Red Card, a crackdown on crime during Seattle’s World Cup matches.

10 hours ago

seal shot in head bellingham...

Lexi Herda, KIRO 7 News

Petition demands investigation after third seal is shot in the head in WA

A group of people is demanding action after a third seal was shot in the head in Washington.

12 hours ago

bellevue...

MyNorthwest Staff

Bellevue office buildings shed $1.61 billion in value as vacancy rate surges

Downtown Bellevue's office market has taken a substantial hit over the last four years, with soaring vacancy rates dragging property values down.

12 hours ago

WA dave's hot chicken...

Jason Sutich

Dave’s Hot Chicken expands further into WA with new store

The Nashville-style chicken finger joint, Dave's Hot Chicken, is expanding further into Washington with its first store in Lynnwood.

13 hours ago

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