The United States economy experienced slower growth than anticipated at the end of 2025, with the Gross Domestic Product (GDP) increasing at an annualized rate of just 1.4% in the fourth quarter. This disappointing figure follows a much stronger growth rate of 4.4% in the previous quarter, highlighting a significant economic deceleration. The cause of this downturn is largely attributed to a historically long federal government shutdown, which hampered various sectors, alongside reduced consumer spending and international trade activities.

Data released by the Bureau of Economic Analysis (BEA) indicated that for the entire year of 2025, the economy expanded by 2.2%. However, the quarterly results fell short of economists' expectations, as compiled by Bloomberg. The government shutdown effectively affected economic operations, with federal service reductions contributing substantially to the downturn, subtracting nearly one percentage point from the overall growth.

Economic analysts are now scrutinizing the implications of this slowdown for future growth prospects, particularly given that a significant portion of the quarter was marked by the shutdown. The BEA's findings also suggest that without the adverse effects of the shutdown, growth could have been considerably higher. Policymakers might need to reevaluate strategies moving forward to mitigate these disruptions and bolster recovery efforts for consumers and businesses alike.