U.S. GDP growth slowed to 0.7% in Q4 2025 due to a government shutdown, weak spending, and job losses, with full-year growth revised to 2.1%.

The U.S. economy grew at a revised 0.7% annual rate in the fourth quarter of 2025, a sharp slowdown from the initial 1.4% estimate, driven by a 43-day government shutdown, weaker consumer spending, declining exports, and reduced business investment. Full-year 2025 GDP growth was revised to 2.1%, slightly below the prior estimate, reflecting a broad economic deceleration. Despite resilient consumer demand, the job market weakened, with 92,000 jobs lost in February 2026 and monthly hiring averaging fewer than 10,000 in 2025—the weakest pace outside recession years since 2002.