Trump Brags About Booming Economy, But the Numbers Tell a Different Story

In a speech in Iowa, the former president made exaggerated claims about the state of the U.S. economy that don't hold up to scrutiny.

Feb. 1, 2026 at 5:47am

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Former President Trump gave a speech in Iowa last week where he boasted about the strength of the U.S. economy, claiming it is "booming" and that he has "slashed our trade deficit by 77%". However, an analysis of the actual economic data paints a different picture, with GDP growth, job creation, and the trade deficit all failing to live up to Trump's grandiose statements.

Why it matters

Trump's attempts to paint a rosy picture of the economy are seen as politically motivated, as polls show a majority of voters are skeptical about the state of the economy. The former president's inflated rhetoric is at odds with the lived experiences of many Americans, particularly farmers in Iowa who have been hard hit by Trump's trade policies.

The details

According to projections, the final GDP growth number for 2025 is expected to be between 2.8%-3.3%, which is average but far from "booming." Job creation in 2025 was the slowest since 2003, with only 584,000 jobs created compared to 2.23 million during Biden's last year. Trump's claim of slashing the trade deficit by 77% is also false - the trade deficit actually increased by 4% in 2025 compared to the prior year.

  • Trump gave the speech in Iowa last week.
  • The 4th quarter GDP numbers for 2025 are not yet finalized, but analysts are projecting growth of 2.8%-3.3%.
  • The trade deficit through November 2025 stood at $839.5 billion, up 4% from the same period in 2024 when it was $806.5 billion.

The players

Donald Trump

The former president of the United States who gave the speech in Iowa boasting about the economy.

John Tsitrian

A businessman and writer from the Black Hills who authored the article analyzing Trump's claims about the economy.

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What they’re saying

“Our economy is booming.”

— Donald Trump

“Inflation has been defeated.”

— Donald Trump

“In one year I've slashed our trade deficit by 77%.”

— Donald Trump

The takeaway

Trump's attempts to paint a rosy picture of the economy during his Iowa speech appear to be more political rhetoric than reality, as the actual economic data tells a different story. This disconnect between Trump's claims and the lived experiences of many Americans, particularly farmers in Iowa, highlights the importance of scrutinizing political rhetoric and relying on objective economic indicators.