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US Economy Grows More Slowly Than Expected
(MENAFN) The US economy grew by 0.7% in the final quarter of 2025, falling short of the initial projections of 1.4% expansion.
The gross domestic product (GDP) was revised downward by 0.7 percentage points from the initial estimate, primarily due to reduced forecasts for exports, consumer spending, government expenditure, and investment. Imports fell less than previously reported, the Bureau of Economic Analysis (BEA) noted on Friday.
In the preceding quarter, the nation’s GDP had risen by 4.4%, according to the bureau.
The bureau explained: "The contributors to the increase in real GDP in the fourth quarter were increases in consumer spending and investment.
"These movements were partly offset by decreases in government spending and exports. Imports, which are a subtraction in the calculation of GDP, decreased."
It added that compared with the third quarter, the deceleration in real GDP during the fourth quarter was driven by drops in government spending and exports, along with slower expansion in consumer spending, partly balanced by stronger investment.
The bureau also noted that the reduction in imports was smaller than in the previous quarter.
The gross domestic product (GDP) was revised downward by 0.7 percentage points from the initial estimate, primarily due to reduced forecasts for exports, consumer spending, government expenditure, and investment. Imports fell less than previously reported, the Bureau of Economic Analysis (BEA) noted on Friday.
In the preceding quarter, the nation’s GDP had risen by 4.4%, according to the bureau.
The bureau explained: "The contributors to the increase in real GDP in the fourth quarter were increases in consumer spending and investment.
"These movements were partly offset by decreases in government spending and exports. Imports, which are a subtraction in the calculation of GDP, decreased."
It added that compared with the third quarter, the deceleration in real GDP during the fourth quarter was driven by drops in government spending and exports, along with slower expansion in consumer spending, partly balanced by stronger investment.
The bureau also noted that the reduction in imports was smaller than in the previous quarter.
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