Tennessee Economic Outlook 2026
GDP growth, unemployment, tariff impacts, and economic forecast for Tennessee heading into the 2026 elections.
3.2%
GDP Growth Rate
3.5%
Unemployment Rate
Surplus
State Budget Outlook
Growing
Job Growth Forecast
2026 Economic Overview
Tennessee is having an economic moment with Ford’s massive Blue Oval City EV investment. The tension between Republican anti-EV rhetoric and Ford’s massive Tennessee investment creates political complexity.
Key Economic Indicators
| Indicator | Value / Status |
|---|---|
| GDP Growth Rate | 3.2% |
| Unemployment Rate | 3.5% |
| Top Economic Sector | Auto Manufacturing, Healthcare, Tourism |
| State Budget Outlook | Surplus |
| Job Growth Forecast | Growing |
| Tariff Impact | High — major Nissan, Volkswagen, GM facilities; Ford Blue Oval City opening |
| Key Economic Risk | EV transition impact on Tennessee auto plants; Ford Blue Oval City ramp-up |