US economic growth slowed in fourth quarter of 2025 amid government shutdown
GDP grew 1.4% last quarter, down from economists' forecast of 3%, though AI and tax cuts could boost growth this year
US economic growth slowed more than expected in the fourth quarter amid disruptions from last year's government shutdown and a moderation in consumer spending, but tax cuts and investment in artificial intelligence were expected to support activity this year.
Gross domestic product (GDP) increased at a 1.4% annualized rate last quarter, the commerce department's Bureau of Economic Analysis said in its advance estimate of fourth-quarter GDP on Friday. Economists polled by Reuters had forecast GDP rising at a 3.0% pace. The survey was, however, completed before data on Thursday showing the trade deficit widening to a five-month high in December.
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