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U.S. economy grew 2% from January-March, recovering from federal shutdown; Iran war clouds outlook

WASHINGTON (AP) — The U. S. economy accelerated at the start of 2026, expanding at a modest 2% pace from January through March after recovering from last fall’s 43-day federal government shutdown. But the outlook is clouded by the Iran war. The Commerce Department reported Thursday that gross domestic product — the nation’s output of goods and services — rebounded from a lackluster 0. 5% expansion the last three months of 2025. The federal government’s spending and investment grew...

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