The U.S. economy experienced a significant slowdown in the fourth quarter of last year, with GDP growth decelerating to an annualized rate of 1.4%, according to preliminary data from the U.S. Bureau of Economic Analysis. This figure fell short of the 3.0% growth forecasted by economists, largely due to the impact of a government shutdown and declining consumer spending.
Despite these challenges, the outlook for 2026 remains optimistic, with expectations that tax cuts and investments in artificial intelligence will bolster economic activity. The report also highlighted a widening trade deficit in December, reaching its highest level in five months. Former President Trump commented on social media, attributing a two-percentage-point reduction in GDP to the government shutdown and advocating against future shutdowns and for lower interest rates.
U.S. Q4 GDP Growth Slows to 1.4% Amid Shutdown and Spending Decline
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