Trending Now - GDP Growth Revised Down to 0.7%, Economists Concerned

WHO:

President Trump

Heather Long, economist

Sonu Varghese, financial analyst

Elizabeth Renter, economist

Bureau of Economic Analysis

WHAT:

Gross domestic product (GDP) growth was revised down to 0.7 percent for the fourth quarter of 2025.

The GDP increase for the first year of Trump’s second term was 2.1 percent.

The GDP growth forecast for Q4 2025 was between 1.4 to 1.5 percent.

The previous period's GDP growth was 4.4 percent.

Core inflation rose by 0.4 percent in January 2026, resulting in an annual rate of 3.1 percent.

Consumer spending was 2 percent in Q4 2025, down from 3.5 percent in Q3 2025.

Federal spending was reduced by 16.7 percent due to a government shutdown, which slashed 1.16 percent off the GDP.

WHERE:

United States

WHEN:

Fourth quarter of 2025

January 2026

The government shutdown occurred prior to the GDP report.

WHY:

The government shutdown reduced federal spending, impacting GDP growth.

Trump’s tariffs hindered consumer spending without significantly reducing imports.

Low job growth contributed to reduced consumer spending.

HOW:

The GDP and inflation numbers were reported by the Commerce Department and analyzed by economists and financial analysts.

(UPDATED March 13, 2026 19:22 UTC)

Today, the Bureau of Economic Analysis reported that GDP growth for the fourth quarter of 2025 has been revised down to 0.7 percent, a significant drop from the previous period's growth of 4.4 percent. Economists, including Heather Long and Elizabeth Renter, noted that consumer spending fell to 2 percent in the fourth quarter, down from 3.5 percent in the third quarter, largely due to a government shutdown that reduced federal spending by 16.7 percent. Additionally, core inflation rose by 0.4 percent in January 2026, bringing the annual rate to 3.1 percent, as analysts highlighted the impact of Trump’s tariffs and low job growth on the economy.