economy
February 20, 2026
GDP grew at 1.4% rate in final quarter of 2025, well below expectations
The economy grew at a 1.4% seasonally adjusted annual rate in the fourth quarter of 2025, the Bureau of Economic Analysis reported in an estimate of gross domestic product, far below the forecast growth that President Donald Trump and Republicans were hoping would boost their political prospects as they prepare for the midterm elections.
TL;DR
- Fourth quarter 2025 GDP growth was 1.4%, far below the forecasted 3%.
- Factors contributing to the slowdown include a government shutdown, decreased consumer spending, and a retraction in homebuilding.
- Overall GDP growth for 2025 was 2.2%.
- The labor market remains resilient, with positive job growth and low unemployment.
- Revisions showed that employment growth in 2025 was lower than previously estimated.
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