US Economic Growth Slows to 0.7% in Fourth Quarter of 2025

The U.S. Economy experienced a significant slowdown in growth during the fourth quarter of 2025, expanding at an annual rate of 0.7%, according to the second estimate released by the U.S. Bureau of Economic Analysis (BEA) on March 13, 2026. This figure represents a downward revision from the initial estimate of 1.4% and a considerable deceleration from the 4.4% growth recorded in the third quarter.

Key Factors Contributing to the Slowdown

The deceleration in economic growth was driven by a combination of factors. Increases in consumer spending and investment provided some upward momentum, but these were offset by decreases in government spending and exports. Imports declined during the quarter, which, as a subtraction in the calculation of GDP, further contributed to the slower growth rate. Bureau of Economic Analysis

2025 Annual Growth

Considering the entire year of 2025, the U.S. Economy grew at an annual rate of approximately 2.08%. This figure incorporates the contraction of 0.6% in the first quarter, followed by increases of 3.8% in the second quarter and 4.4% in the third quarter. However, this annual figure remains subject to revision as the BEA releases further data. Fox Business

Revisions and Future Releases

The current estimate is a second release, and the BEA will issue a final revision to the fourth-quarter GDP figure on April 9, 2026. Notably, news release tables in PDF and Excel format will no longer be provided beginning with the third estimate. Users are directed to utilize BEA’s online Interactive Data Tables for detailed information. Bureau of Economic Analysis

Historical Context

Real GDP increased 4.4 percent in the third quarter of 2025. The contributors to the increase in real GDP in the fourth quarter were increases in consumer spending and investment. Bureau of Economic Analysis