Why is US GDP growth slowing, and how can it be reversed?

United States economic growth slowed in the second quarter of 2026 amid a growing deficit and increasing inflationary pressures.US gross domestic product (GDP) grew by 1.5 percent between April and June. That is a sharp decline from 2.1 percent growth in the first quarter of the year, according to a Bureau of Economic Analysis (BEA) report released on Thursday.Recommended Stories list of 4 itemslist 1 of 4US Fed holds interest rates steady, citing ‘elevated’ inflationlist 2 of 4Sam Altman meets lawmakers on back of OpenAI agents hacking companieslist 3 of 4Why is Saudi Arabia forming a coalition to protect the Red Sea?list 4 of 4US GDP growth dips as inflation and trade deficits pressure economyend of listA widening trade deficit is a key reason why GDP is slowing, as is a jump in petrol prices, experts say.“It’s a classic supply shock. The combination of tariffs and oil price spikes is exactly what a macroeconomist would expect to happen,” Michael Klein, professor of international economic affairs at The Fletcher School at Tufts University, told Al Jazeera.The US has increased purchases of goods like semiconductors, telecommunications equipment, and industrial equipment, according...