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What the economic outlook for 2026 means for Michigan’s economy, businesses

Advocacy News – Jan. 15, 2026 

The national economy is entering 2026 on relatively solid footing, with growth projected at approximately 2%. However, a new report by the U.S. Chamber of Commerce finds that pro-growth policy choices could lift that pace to 3% or higher — a meaningful difference that would significantly expand opportunity for businesses, workers and communities.

Why it matters: Sustained economic growth at 3% would double the size of the U.S. economy in just over two decades, translating into more jobs, higher wages and stronger communities. Whether we realize that potential will depend largely on policy decisions made at the national, state and local level — and on business leaders engaging early and often.

  • For Michigan, stronger national growth would amplify demand in the state’s core industries — manufacturing, automotive and mobility, professional services, advanced manufacturing sectors, and more. Higher growth would also support increased business investment, stronger export activity and improved consumer confidence, all of which are critical to Michigan’s economic base.

What we’ve learned and what comes next: Despite economic turbulence in 2025, the economy demonstrated resilience, growing at roughly 2%. That performance underscores the strength of the private sector, but also highlights the limits of growth absent deliberate, pro-growth policies.

  • Moving beyond a 2% baseline will require action on issues that fall squarely within the influence of state and federal policymakers on key issues like workforce availability, housing affordability, infrastructure investment, regulatory certainty, and a competitive tax environment.

The bottom line: Achieving 3% growth is attainable, but it is not automatic. It requires sustained engagement, clear priorities and coordinated action at the national and state level to turn economic potential into measurable progress and ensure that growth translates into opportunity for employers, workers and communities alike. The Michigan Chamber stands ready to engage.