WASHINGTON, D.C. — U.S. gross domestic product (GDP) increased at a 1.4% annual rate in the fourth quarter of 2025, according to data estimates released by the Bureau of Economic Analysis (BEA) at the Commerce Department.
Overall, the economy expanded by 2.2% last year, lower than the 2.8% growth in 2024, according to the BEA. BEA estimates the federal government shutdown created a reduction in services provided by the federal government that subtracted about 1.0 percentage point from real GDP growth in Q4. The 2025 U.S. federal government shutdown lasted 43 days, running from October 1, 2025, through November 12, 2025, making it the longest shutdown in American history.
Carrie Sheffield, senior policy analyst at IW’s Center for Economic Opportunity (CEO), issued the following statement:
“The sluggish GDP number for Q4 2025 is unwelcome news and signals to President Trump and conservatives in Congress how congressional Democrats are willing to hold the U.S. economy hostage while they play political games and American families suffer.
“Amid a tight jobs market and rising wages, contributors to the increase in real GDP in the fourth quarter were increases in consumer spending and investment.
“With inflation easing and the benefits of the Working Families Tax Cut Act (i.e., the One Big, Beautiful Bill) taking effect, we hope Q1 2026 and beyond will yield accelerating growth as conservatives enact policies to keep the economy growing.”
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