Massachusetts Economy Faces Slower Growth Amid Federal Policy Shifts, Experts Say

Economists at MassBenchmarks have observed that early indicators from employment and labor force surveys suggest the initial effects of President Donald Trump's trade policies and other federal government changes are influencing Massachusetts's economy, leading to an anticipated deceleration in growth. The state's real gross state product (GSP) expanded by an annualized 2.6% in the second quarter, compared to the national GDP growth rate of 3%. Projections indicate that Massachusetts's GSP will grow by approximately 2% in the third quarter and 1.9% in the fourth quarter of this year. These forecasts are outlined in a report published by the University of Massachusetts Amherst Donahue Institute, in collaboration with the Federal Reserve Bank of Boston.