The numbers are in — and despite the endless handwringing from cable-news economists and professional America pessimists, the US economy is once again lapping much of the developed world.
Fresh data from the US Bureau of Economic Analysis showed America’s GDP grew at a 2% annual clip in the first quarter of 2026, a major rebound from late last year’s sluggish pace. Meanwhile, across the Atlantic? Economic rigor mortis.
The Group of Seven nations averaged just 1.1% growth. The European Union barely managed a pulse at 0.1%.
Germany — the supposed industrial engine of Europe — crawled to a pathetic 0.3%. France posted a goose egg: 0%. Italy limped in at 0.2%.
So much for Europe’s “green transition” miracle economy.
The UK managed 0.5% growth, which in modern Britain apparently qualifies as a champagne moment. Canada and Japan performed somewhat better, with growth estimates around 1.7% and 1.48%, respectively — still trailing the United States.
And unlike much of the developed world, America’s growth wasn’t fueled by government accounting tricks alone. Business investment exploded higher — especially in artificial intelligence, where US firms continue to dominate while European regulators spend their days inventing new rules and carbon taxes.
Federal spending and investment rose at a 9.3% annual rate in the first quarter, while private business investment jumped 8.7%, powered largely by AI infrastructure, software and data-center spending. America is building the future while Europe debates thermostat settings.
Even critics were forced to admit the economy showed “resilience” despite geopolitical chaos overseas and rising energy costs tied to the Iran conflict. One analysis noted that “AI investment alone accounted for about half of all GDP growth in Q1.”
Of course, it’s not all sunshine and soaring stock portfolios.
Consumers are still feeling squeezed. Spending growth slowed to 1.6% in the first quarter, down from 1.9% at the end of 2025. Inflation also remains hotter than the Federal Reserve would like, thanks in large part to surging oil prices after the war with Iran rattled global energy markets and disrupted shipping through the Strait of Hormuz.
That pain is hitting ordinary Americans every time they fill up their tanks or swipe a credit card at the grocery store.
Still, compared to the economic faceplants happening elsewhere in the developed world, the US remains the cleanest shirt in the dirty laundry pile.
Japan’s own economic researchers are already warning growth there could stall out later this year. Canada faces recession fears tied to energy shocks and trade tensions. Europe continues wrestling with inflation, weak manufacturing and an energy crunch that refuses to die.
Meanwhile, the American economy keeps grinding forward — powered by investment, innovation and a tech sector that still runs circles around the rest of the planet. Not bad for the economy critics spent months insisting was on the verge of collapse.
