US GDP rises 0.7% in Q4 after sharp downgrade; full-year 2025 pace revised to 2.1%

The US economy expanded at a markedly slower pace in the final quarter of 2025 than previously estimated, according to government data released on Friday, as consumer demand and public spending turned out weaker than earlier projected.The Commerce Department said gross domestic product (GDP) grew at an annual rate of 0.7 per cent in the October–December period, down sharply from the earlier estimate of 1.4 per cent, AFP reported.Explaining the revision, the department said the downgrade reflected “downward revisions to exports, consumer spending, government spending, and investment.” It added that imports fell by less than initially calculated.For the entire year, US economic growth in 2025 was placed at 2.1 per cent, slightly below the earlier estimate of 2.2 per cent.The softer data comes during the first full year of President Donald Trump’s return to office and at a time when concerns are building over a cooling jobs market and stubbornly high inflation.When preliminary figures were released earlier, the Republican leader had blamed the slower growth on the impact of a prolonged government shutdown late last year.In contrast, the economy had expanded at a much faster 4.4 per cent annual rate in the third quarter, the Commerce Department said.