This report presents the state economic forecast for 2026, detailing expected growth rates across various regions in the United States. The forecast indicates that New Jersey is projected to grow at 2.1%, while New York and Pennsylvania are expected to see growth rates of 2.4% and 2.0%, respectively. The report outlines challenges faced by the Middle Atlantic and Upper South Atlantic regions, including federal research funding cuts and trade uncertainties. It notes that North Carolina is expected to lead growth in the Upper South Atlantic at 2.6%. The Lower South Atlantic is anticipated to experience a growth rate of 2.4%, with Florida and South Carolina contributing to this figure. The report also discusses the impact of demographic trends on labor supply, particularly in New England, where aging populations are expected to constrain growth. Additionally, it highlights the expected moderation in house price growth across various states due to supply constraints and economic conditions.