At the World Economic Forum in Davos, Switzerland, US Commerce Secretary Howard Lutnick delivered an upbeat assessment of the nation's economic outlook. He projected that US economic growth in the first quarter of 2026 would surpass 5%, driven by strong domestic momentum, effective fiscal policies, and a resurgence in business investment.
Key Drivers Behind the Growth Surge
Lutnick highlighted a confluence of factors fueling the rebound: reshoring of manufacturing, surging infrastructure spending, and rapid technological innovation. He emphasized that rising capital expenditures across critical sectors reflect growing corporate confidence in long-term market stability.
- Manufacturing employment has grown for six consecutive quarters
- Investment in semiconductors and clean energy has doubled year-on-year
- Small and medium enterprises show highest expansion intent in three years
A Call for Calm in Transatlantic Trade Relations
On transatlantic trade tensions, Lutnick warned that retaliatory tariffs from Europe in response to potential US measures could reignite a cycle of trade hostilities. Such actions, he argued, would harm both economies and undermine global recovery efforts.
He urged the EU to pursue dialogue over confrontation, advocating for dispute resolution through established international frameworks. Cooperation, he stressed, remains the most effective path to shared and sustainable economic prosperity.