Economy grew by just 0.7% in Fourth quarter
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GDP grew at a sluggish 0.7% pace in the final months of 2025 as the government shutdown hurt economic activity.
Real GDP rose at just a 0.7% annual rate, falling well short of the 1.4% forecast and marking a steep drop-off from the 4.4% final estimate seen in Q3.
GDP grew at an annualized rate of 1.4% in the fourth quarter, down from 4.4% in the third quarter. The report was originally scheduled for Jan. 29, but was released at 8:30 a.m. ET Friday because of government shutdown-related delays.
President Donald Trump claims his tariffs have revived the U.S. economy, calling it an “American economic miracle.”
The U.S. expanded at a subpar 1.4% annual pace in the fourth quarter of 2025, depressed by a record 43-day federal shutdown that caused a big decline in government spending.