US economy grew 2% despite Iran war — but Americans' spending slowed

The US economy grew at a 2% annualized pace in Q1 2026 after recovering from a 43-day federal government shutdown. While the growth print is modestly positive, the outlook is clouded by the Iran war, which raises geopolitical risk and could pressure sentiment, energy prices, and growth expectations.

Analysis

The US economy grew at a 2% annualized pace in Q1 2026 after recovering from a 43-day federal government shutdown. While the growth print is modestly positive, the outlook is clouded by the Iran war, which raises geopolitical risk and could pressure sentiment, energy prices, and growth expectations.