The U.S. economy delivered a stronger-than-expected performance in the January GDP report, adding fresh momentum to a week already dominated by bold economic claims from President Donald Trump and Treasury Secretary Scott Bessent at the World Economic Forum in Davos.
New data shows that U.S. GDP rose at an annualized 4.4%, narrowly beating the 4.3% forecast and accelerating sharply from the previous 3.8% reading.
The stronger print points to a solid expansion in consumer spending and business activity, reinforcing the view that the U.S. recovery remains durable despite global headwinds.
A Coordinated Message of Strength From Davos
News of the GDP beat comes as Trump and Bessent used the global stage in Davos to project confidence in the U.S. economy.
Trump’s address emphasized tariffs, geopolitical leverage, and what he called a stronger global environment shaped by U.S. leadership.
He told attendees that the U.S. expects around $600 billion in tariff revenue, arguing that tariffs will remain a cornerstone of his economic strategy and could generate even greater inflows next year.
The president also portrayed the United States as the epicenter of global economic and military power, insisting that “parts of the world economy are stronger” thanks to his administration’s policies.
His remarks were tied closely to his revived push for a strategic agreement involving Greenland, which he framed as both an economic and national security necessity.
After discussions with NATO Secretary-General Mark Rutte, Trump said he had withdrawn the threat of new tariffs on European allies in exchange for advancing a “framework” for a future Greenland-related deal, briefly easing market concerns over renewed transatlantic trade tension.
Trump’s messaging also included sharp criticism of European economic policies and climate initiatives, which he deemed inefficient. His America First narrative dominated much of his public commentary, setting the tone for U.S. engagement at this year’s forum.
Bessent Predicts Even Faster Growth Ahead
If Trump sought to frame the narrative, Treasury Secretary Bessent supplied the supporting numbers. In a series of interviews and panels, Bessent projected real U.S. GDP growth of 4–5% for 2026, well above many private-sector and Federal Reserve forecasts.
His prediction aligns closely with the newly released 4.4% figure, giving his optimistic messaging additional weight.
Bessent also pushed back against concerns that European portfolio managers may be reducing holdings of U.S. Treasuries.
He dismissed fears of a sustained sell-off, insisting that foreign appetite for U.S. debt remains stable despite geopolitical tensions. Speaking to European officials and executives, he urged them “not to retaliate” over U.S. trade and territorial pressure, telling them to “sit back, take a deep breath,” and listen to the administration’s arguments as discussions continue.
Throughout his appearances, Bessent continued to frame the administration’s trade stance, which is centered on tariff leverage and so-called “fair trade,” as a transformative model for the global economy. Though specifics remained limited beyond growth projections and geopolitical messaging, his remarks signaled continued confidence in the country’s economic trajectory.
A Positive Signal for Global Markets
The convergence of upbeat GDP data and confident messaging from U.S. leaders adds a notable data point to ongoing conversations in Davos about global economic fragility. While many countries face slowing growth, tightening financial conditions, and rising geopolitical risks, the U.S. continues to stand out as a relative bright spot.
The 4.4% GDP figure suggests a resilient domestic economy capable of weathering external pressures, from international trade disputes to persistent inflation challenges.
