Original Source
US Q4 2025 GDP Growth Plummets to 0.7%, Fueling Inflation Fears
US Economic Growth Significantly Lower Than Expected
Government data released on Friday (2026) showed that the US economy grew at a significantly slower pace than initially estimated in the final months of 2025. The Commerce Department reported that the US gross domestic product (GDP) rose at an annual rate of 0.7% in the fourth quarter. This figure is a sharp downgrade from its earlier estimate of 1.4% for the October to December period, indicating that the world's largest economy was on a weaker trajectory than projected.
Inflation Pressures Amidst Middle East Conflict Fallout
This major downgrade in economic growth comes amidst the ongoing fallout from the war in the Middle East, which continues to impact global economic stability. The revised data suggests a more fragile economic landscape, intensifying existing inflation worries. The significant reduction in the estimated growth rate from 1.4% to 0.7% is expected to influence future US economic policies and consumer sentiment, as well as the global economy.
*Source: SCMP (2026-03-13)*
