US Q4 GDP Only 1.4%: Economy Slows Sharply
US economic growth slowed sharply in late 2025. Advance estimate data shows US GDP growing 1.4% (annualized) in Q4 2025, the weakest since Q1 2025.
This figure is far below market expectations of around 3%, and a drastic decrease from the 4.4% seen in Q3 2025. In other words, the US economic engine is still running—but the throttle is clearly being reduced.
The main contributors to Q4 growth came from consumer spending and investment. This means domestic demand remains the biggest driver, although its pace is not as strong as in the previous quarter.
However, this momentum was partially offset by a decline in government spending and weakening exports. These two components acted as "brakes" that prevented GDP from growing higher.
On the other hand, imports also fell. Technically, declining imports can "help" the GDP calculation (because imports are subtracted from the formula), but the headline still indicates weakening economic momentum.
For the entire year of 2025, the US economy is projected to grow by 2.2%, down from 2.8% in 2024. This annual slowdown primarily reflects that while consumption and investment are still rising, the pace is not as strong as in the previous year.
Source: Newsmaker.id
