New Trump Administration data: Iowa economy shrank in Q1, inflation over 4%
State has shed 11,600 jobs in the last year
DES MOINES – The Bureau of Economic Analysis’ quarterly state GDP numbers showed Iowa was one of just three states with a shrinking economy in the first three months of 2026. The data is another example of recent grim economic news for Iowans:
- Year over year, the Federal Reserve’s preferred gauge of inflation is up over 4.1% nationally. According to some measures, inflation in the Midwest is up over 5% since last year.
- Iowa has lost more than 11,600 jobs in the last year.
- Over the last three years, Iowa has averaged 48th in personal income growth while having the second-highest rate of new cancer cases.
“Time is up for a decade of one-party rule in Iowa,” said Iowa Democratic Party Chair Rita Hart. “Data continues to show what Iowans know — our economy isn’t growing, everything is too expensive, and regular people are falling behind. The problems our state faces didn’t start with the Trump administration, but they are getting worse, not better. It’s time to rotate the crops.”
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