LEXINGTON, Ky. — The University of Kentucky’s Center for Business and Economic Research has released the 2026 Kentucky Annual Economic Report. The report outlines where Kentucky’s economy stands today and what to expect in the year ahead. Kentucky’s Economic StrengthsManufacturing remains the backbone of Kentucky’s economy. Workforce participation remains lower than in most other states, especially in rural and eastern Kentucky. For Kentucky businesses, workforce participation, innovation capacity, and infrastructure quality remain key factors shaping competitiveness in the years ahead.