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State Economic Forecast
New England entered 2026 with uneven momentum, but financial services, defense manufacturing, health care, and productivity gains are helping offset headwinds from higher energy prices and tighter financial conditions. We expect regional economic growth of 2.0% in 2026, led by Massachusetts and New Hampshire, before slowing to 1.7% in 2027. Aging demographics, reduced immigration, and continued domestic outmigration are restraining labor force growth, which should keep the labor market tight des
September 22, 2026
