The US has enjoyed dramatically larger economic growth so far this year than most other large developed countries in the world, economic data shows.
US gross domestic product (GDP) expanded by 2% in the first quarter, compared to the previous water, Bureau of Economic Statistics Data released last week showed.
Compare that to the Group of Seven (G7) bloc of countries — which has a projected economic growth of 1.1% over the same period.
America’s GDP grew by 2% in the first quarter of 2026, showing signs of healing from last fall’s government shutdown. AP
And the US figure is blowing away the meager 0.1% growth reported in the EU.
Germany — Europe’s largest economy — clocked a 0.3% growth rate. France was dead flat — 0% growth, while Italy reported 0.2%.
United States — 2%
Canada — 1.7%
Japan — 1.48%
United Kingdom — 0.5%
Germany — 0.3%
Italy — 0.2%
France — 0%
The UK is expected to fare a little better with the start of the year yielding an increase of about 0.5%, according to the Office for National Statistics.
Japan and Canada, meanwhile, enjoyed a higher boost in GDP, albeit at a smaller growth than the US.
Japan is expected to show a 1.48% quarterly increase for the start of 2026, according to the Japan Center for Economic Research.
Tokyo, however, is expected to see a rougher outcome for the rest of 2026, with the following year expected to see little to no economic growth at all, the center warned.
Souring energy prices have taken their toll on the world’s top economies due to the war in Iran. Helayne Seidman for the NY Post
Canada will likely see a 1.7% quarterly growth after the nation saw an increase in manufacturing, wholesale trade, transportation and mining and oil and gas extraction, Statistics Canada said.
Experts have warned that Canada’s economy is still at elevated risk of recession this year amid global energy price shocks and tariff disputes with the US.
Following lackluster growth at the end 2025, America’s gross domestic product rebounded at a faster rate than all other G7 members, spurred by growing federal and private investments, according to the US Department of Commerce.
While US tech businesses enjoy a boom, average consumer spending was down in the latest quarter. AP
The federal government’s spending and investment grew at a 9.3% annual rate in the first quarter, with business investments rocketing by 8.7%, spurred by spending in artificial intelligence.
The EU has been especially hurt in the energy sector due to the war in Iran, with the block also dealing with inflation that has hit the central bank’s 2% target, adding pressure on finance officials to consider interest rate hikes.
While the US enjoyed growth in the first quarter, uncertainty continues to persist amid the war with Iran that has blocked the Strait of Hormuz and driven up energy prices, fueling inflation and hurting consumers.
Growth in consumer spending, which accounts for about 70% of US economic activity, notably slowed to 1.6% in the first quarter of 2026 from 1.9% at the end of last year.