US Economic Growth Decelerates in Final Quarter
Growth in the US economy slowed towards the end of last year, influenced by a reduction in consumer spending and a federal government shutdown.
The world's largest economy expanded at an annual rate of 1.4% in the three months ending December, a decline from a strong 4.4% growth rate recorded in the previous quarter.
Year Marked by Economic Turbulence
This slowdown concluded a turbulent year for the US economy, which faced challenges including new tariffs, stricter immigration policies, reductions in government spending, and ongoing inflationary pressures.
Despite these headwinds, the overall economic growth for 2025 was 2.2%, surpassing many expectations given the difficult conditions.
Impact of Trade Policy and Imports
Underlying economic momentum was evident; however, significant fluctuations in trade policy throughout the year caused volatility in economic data.
The year began with a mild contraction, partly driven by a surge in imports, which negatively affect GDP growth calculations.
A similar factor contributed to the economic deceleration in the last quarter of the year.
