US GDP growth slows to 0.5% in Q4 2025

U.S. gross domestic product (GDP) increased at an annual rate of 0.5 percent in the fourth quarter of 2025, according to the third estimate report released Thursday by the U.S. Commerce Department.

The growth was revised down 0.2 percentage points from the second estimate, primarily reflecting a downward revision to investment. It is far below market expectations for a 0.7 percent growth, and much lower than the 4.4 percent growth reported in the third quarter.

The report attributed the GDP growth in the fourth quarter to increases in consumer spending and investment, which were partly offset by decreases in government spending and exports. Imports also decreased.

The sudden fall in U.S. GDP growth signals deeper economic weakness at a time when global uncertainty, policy shocks and demand pressures are rising together, local media reported Thursday.

The U.S. GDP rose 2.1 percent in 2025 on an annual basis, the same as previously estimated. The GDP increase in 2025 primarily reflected increases in consumer spending and investment, the report said.

The third report for the fourth quarter of 2025 was originally scheduled for March 27, 2026, but was rescheduled due to the October-November 2025 government shutdown.