In a recent development, the US economy experienced a slowdown more significant than anticipated at the end of 2025. According to a report by ABC News, the Gross Domestic Product (GDP) grew at a 1.4 percent annual rate in the last quarter of the year, falling short of expectations and reflecting the impact of various factors on the economy.
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The rise in inflation was a key concern during this period, as a gauge of inflation accelerated in December, surpassing the Federal Reserve’s target of 2% a year. This rapid increase in prices has been a cause for worry among many Americans, as reported by ABC News.
Despite the slowdown in the final quarter, the U.S. economy managed to grow by 2.2% in 2025, as highlighted by NPR. This growth was primarily driven by robust consumer spending and business investment, indicating a relatively stable economic performance throughout the year.
However, the effects of the government shutdown in October-November weighed down on the economic growth, subtracting approximately one percentage point from the overall GDP expansion, as reported by Breitbart. This factor contributed to the slower-than-expected growth rate in the fourth quarter.
The Hill emphasized that the U.S. economy grew far slower than anticipated in the final three months of 2025, with GDP rising at an annualized rate of 1.4 percent, contrary to economists’ expectations.
The New York Times also reported on the modest growth of the economy at the end of 2025, noting that the effects of the government shutdown played a significant role in slowing down the GDP expansion.
In conclusion, the U.S. economy experienced a notable slowdown at the end of 2025, with inflation rising faster than expected and the government shutdown impacting economic growth. Despite these challenges, the economy still managed to grow modestly throughout the year, driven by consumer spending and business investments.
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References:
– ABC News: [US economy slowed more than expected at end of 2025](https://abcnews.com/Business/us-economy-expected-slowed-end-2025/story?id=130296352)
– NPR: [The economy slowed in the last 3 months of the year — but was still solid in 2025](https://www.npr.org/2026/02/20/nx-s1-5718214/economy-gdp-tariffs-inflation-consumer-spending)
– Breitbart: [U.S. Economic Growth Slowed in Fourth Quarter, Weighed Down By Government Shutdown](https://www.breitbart.com/economy/2026/02/20/u-s-economic-growth-slowed-in-fourth-quarter-weighed-down-by-government-shutdown)
– The Hill: [US economy grew far slower than expected in fourth quarter](https://thehill.com/business/5747146-us-economy-grew-slower-2025/)
– The New York Times: [U.S. Economy Grew Modestly at End of 2025](https://www.nytimes.com/2026/02/20/business/economy/us-economy-gdp.html)
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