U.S. Economy Grew Modestly at End of 2025

The U.S. economy slowed at the end of 2025, with inflation-adjusted gross domestic product expanding at a 1.4 percent annual rate in the final quarter, down from a 4.4 percent pace in the third quarter, the Commerce Department said. For the year as a whole, measured from the end of 2024, G.D.P.

increased 2.2 percent. The numbers are preliminary and will be revised at least twice in the coming months. A prolonged government shutdown, which left hundreds of thousands of public sector employees temporarily without pay, was a major factor in the deterioration.

Furloughed workers eventually received back pay, and economists say the episode probably lowered growth by about one percentage point at the end of 2025; the subsequent rebound should lift early 2026. Many economists expect the shutdown’s long-term impact on G.D.P.

United States

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