US Economy Grows More Slowly Than Expected in 4th Quarter

US Economy Grows More Slowly Than Expected in 4th Quarter

N
NTD
113 Video Views·Feb 21, 2026

U.S. economic growth slowed more than expected in the fourth quarter of 2025, with government spending posting its biggest decline since 1972 because of the government shutdown, though other data remained consistent with a steady pace of expansion.

Gross domestic product increased at a 1.4 percent annualized rate in the fourth quarter, the Commerce Department’s Bureau of Economic Analysis said in its advance estimate. The economy grew at a 4.4 percent pace in the third quarter. It grew 2.2 percent last year after expanding 2.8 percent in 2024.

Most of the drag on gross domestic product from the 43-day shutdown, however, will likely be reversed in the first quarter of 2026. Ahead of the release of the Commerce Department’s report on Friday, President Donald Trump flagged the sharper-than-expected slowdown in GDP growth, posting on social media that the “Shutdown cost the U.S.A. at least two points in GDP. That's why they are doing it, in mini form, again. No Shutdowns! Also, LOWER INTEREST RATES.”
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