The U.S. economy grew at an unexpectedly sluggish 0.7% annual rate from October through December, according to the Commerce Department. This is a significant downgrade from the government's initial estimate of 4.4% and 3.8% respectively. The fourth-quarter number was half the government’s first estimate of 1.4%. For all of 2025, GDP grew at a rate of 2.1%, down from 2.2% and down from an initial estimate. The slowdown was attributed to the 43-day government shutdown and sharp decline in consumption growth. Despite these setbacks, the economy has shown surprising resilience despite President Donald Trump's policies, including import taxes and mass deportations.