U.S. Q4 economic growth slows significantly, Trump gives the market an early warning

GateUser-6433627c · 2026-02-20T13:48:50+00:00

U.S. Q4 GDP growth rate is only 1.4%, below the expected 3.0%, mainly due to government shutdown and slowing consumer spending. Nevertheless, tax cuts and AI investments may support economic activity this year. Trump criticized the shutdown for causing GDP decline and called for avoiding another shutdown.

GateUser-6433627c

2026-02-20 13:48:50

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On February 20, due to last year’s government shutdown and slowing consumer spending, U.S. economic growth in the fourth quarter slowed more than expected. However, tax cuts and investments in artificial intelligence are expected to support economic activity this year. The U.S. Census Bureau’s Bureau of Economic Analysis released preliminary data on Friday showing that GDP grew at an annual rate of 1.4% in the fourth quarter. Economists surveyed by Reuters had previously forecasted a 3.0% GDP growth rate. However, this survey was completed before data released on Thursday showed that the December trade deficit widened to its highest level in five months. Before the report was published, Trump posted on social media stating, “The government shutdown has at least reduced U.S. GDP by two percentage points. That’s why they (Democrats) want to shut down again in a small-scale way. No more shutdowns! And, lower interest rates!” (Jin10)

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