US Real GDP Increases at an Annual Rate of 1.6% in Q1, BEA Reports in Its “Second” Estimate

On Thursday, the Bureau of Economic Analysis (BEA) released its “second” estimate for Q1 real gross domestic product (GDP), reporting that GDP increased at an annual rate of 1.6%. In 2025Q4, real GDP increased 0.5%.

The growth in Q1 GDP primarily reflected increases in exports, investment, consumer spending, and government spending, partly offset by an increase in imports—a subtraction in the calculation of GDP.

The latest estimate revised GDP down 0.4 percentage points from the “advance” estimate, reflecting downward revisions to investment and consumer spending.

Compared to 2025Q4, the acceleration in real GDP reflected upturns in government spending and exports and an acceleration in investment that were partly offset by a deceleration in consumer spending. Imports turned up.