Washington’s economy is off to a strong start in 2026. According to new figures from the U.S. Bureau of Economic Analysis, the state’s economy grew by 1.1% during the first three months of the year. That brings Washington’s total economic output, or gross domestic product (GDP), to nearly $730 billion.
If that pace continues through the rest of the year, the state could see annual economic growth of 4.5%—more than double the projected national growth rate of 2.1%. Although it’s too early to predict, Washington could outperform other state economies in 2026 if the trend continues.
Much of that growth is coming from Washington’s technology industry, especially the information sector. This includes companies that create software, provide cloud services, and develop digital and communication technologies.
The Seattle area is home to two of the world’s biggest tech companies, Microsoft and Amazon. Both are investing heavily in AI, with their combined spending on AI expected to reach about $390 billion this year. Those investments are helping fuel Washington’s economic growth.
Still, the data is only from one strong quarter. The 4.5% annual growth estimate assumes Washington’s economy keeps growing at the same rate for the rest of the year, which isn’t guaranteed.
Still, Washington is starting the year in a strong position. If investments in new technology continue at the same rate, the state could continue to outperform much of the country and remain one of the nation’s fastest-growing economies in 2026.
