Economy grew 2.2% in 2025, beating predictions
This feels like a quiet policy shift.
The economy grew 2.2% in 2025, a year of growth that came despite a number of developments that were expected to be major headwinds, including interest rate hikes by the Federal Reserve and President Donald Trump’s imposition of tariffs.
The growth figures, which are adjusted for inflation, were published Friday by the Bureau of Economic Analysis in its preliminary report for gross domestic product for the fourth quarter.
MIKE ROGERS TRIES TO WIN OVER YOUNG MICHIGAN VOTERS WITH HOUSING AFFORDABILITY PLAN
The GDP numbers could help Trump win over voters who are dispirited by inflation.
The relatively strong GDP numbers for 2025 came even after growth turned negative in the first quarter of the year.
GDP shrank at a 0.5% annual rate in the first quarter of 2025, rose 3.8% in the second, increased a strong 4.4% in the third quarter, and ticked up 1.4% in the fourth quarter, according to the most recent estimate.
The latest GDP data for the fourth quarter will be revised twice more in the coming months as government economists continue to sift through the numbers and come to a final figure.
GDP growth has outperformed expectations over the course of Trump’s second term in office. For instance, in March, the Federal Reserve predicted that overall GDP growth for 2025 would end up being just 1.7%.
Nevertheless, consumer sentiment has been extremely low by historical standards, likely because of the sharp price hikes in recent years. Democrats are hoping to use voter discontent and Trump’s low economic approval ratings against Republicans.
Republicans and the White House have been working to highlight initiatives on affordability and on their One Big Beautiful Bill Act, which was enacted last year and prevented most Americans from seeing a tax hike and added new tax cuts for many workers.
Another positive point for the White House has been the labor market. While it has slowed over the past year, job growth has remained positive and claims for unemployment insurance benefits are low.
The economy added 130,000 jobs in January, and the unemployment rate ticked down a tenth of a percentage point to 4.3%, according to the Bureau of Labor Statistics.
Still, a revision to the past year’s data showed that payroll employment was 1 million lower at the end of 2025 than previously thought. Average monthly payroll growth for 2025 was revised down from roughly 50,000 to 15,000.
TRUMP MAY EASE STEEL AND ALUMINUM TARIFFS, TOP TRADE OFFICIAL HINTS
Inflation has …
This feels like a quiet policy shift.
The economy grew 2.2% in 2025, a year of growth that came despite a number of developments that were expected to be major headwinds, including interest rate hikes by the Federal Reserve and President Donald Trump’s imposition of tariffs.
The growth figures, which are adjusted for inflation, were published Friday by the Bureau of Economic Analysis in its preliminary report for gross domestic product for the fourth quarter.
MIKE ROGERS TRIES TO WIN OVER YOUNG MICHIGAN VOTERS WITH HOUSING AFFORDABILITY PLAN
The GDP numbers could help Trump win over voters who are dispirited by inflation.
The relatively strong GDP numbers for 2025 came even after growth turned negative in the first quarter of the year.
GDP shrank at a 0.5% annual rate in the first quarter of 2025, rose 3.8% in the second, increased a strong 4.4% in the third quarter, and ticked up 1.4% in the fourth quarter, according to the most recent estimate.
The latest GDP data for the fourth quarter will be revised twice more in the coming months as government economists continue to sift through the numbers and come to a final figure.
GDP growth has outperformed expectations over the course of Trump’s second term in office. For instance, in March, the Federal Reserve predicted that overall GDP growth for 2025 would end up being just 1.7%.
Nevertheless, consumer sentiment has been extremely low by historical standards, likely because of the sharp price hikes in recent years. Democrats are hoping to use voter discontent and Trump’s low economic approval ratings against Republicans.
Republicans and the White House have been working to highlight initiatives on affordability and on their One Big Beautiful Bill Act, which was enacted last year and prevented most Americans from seeing a tax hike and added new tax cuts for many workers.
Another positive point for the White House has been the labor market. While it has slowed over the past year, job growth has remained positive and claims for unemployment insurance benefits are low.
The economy added 130,000 jobs in January, and the unemployment rate ticked down a tenth of a percentage point to 4.3%, according to the Bureau of Labor Statistics.
Still, a revision to the past year’s data showed that payroll employment was 1 million lower at the end of 2025 than previously thought. Average monthly payroll growth for 2025 was revised down from roughly 50,000 to 15,000.
TRUMP MAY EASE STEEL AND ALUMINUM TARIFFS, TOP TRADE OFFICIAL HINTS
Inflation has …
Economy grew 2.2% in 2025, beating predictions
This feels like a quiet policy shift.
The economy grew 2.2% in 2025, a year of growth that came despite a number of developments that were expected to be major headwinds, including interest rate hikes by the Federal Reserve and President Donald Trump’s imposition of tariffs.
The growth figures, which are adjusted for inflation, were published Friday by the Bureau of Economic Analysis in its preliminary report for gross domestic product for the fourth quarter.
MIKE ROGERS TRIES TO WIN OVER YOUNG MICHIGAN VOTERS WITH HOUSING AFFORDABILITY PLAN
The GDP numbers could help Trump win over voters who are dispirited by inflation.
The relatively strong GDP numbers for 2025 came even after growth turned negative in the first quarter of the year.
GDP shrank at a 0.5% annual rate in the first quarter of 2025, rose 3.8% in the second, increased a strong 4.4% in the third quarter, and ticked up 1.4% in the fourth quarter, according to the most recent estimate.
The latest GDP data for the fourth quarter will be revised twice more in the coming months as government economists continue to sift through the numbers and come to a final figure.
GDP growth has outperformed expectations over the course of Trump’s second term in office. For instance, in March, the Federal Reserve predicted that overall GDP growth for 2025 would end up being just 1.7%.
Nevertheless, consumer sentiment has been extremely low by historical standards, likely because of the sharp price hikes in recent years. Democrats are hoping to use voter discontent and Trump’s low economic approval ratings against Republicans.
Republicans and the White House have been working to highlight initiatives on affordability and on their One Big Beautiful Bill Act, which was enacted last year and prevented most Americans from seeing a tax hike and added new tax cuts for many workers.
Another positive point for the White House has been the labor market. While it has slowed over the past year, job growth has remained positive and claims for unemployment insurance benefits are low.
The economy added 130,000 jobs in January, and the unemployment rate ticked down a tenth of a percentage point to 4.3%, according to the Bureau of Labor Statistics.
Still, a revision to the past year’s data showed that payroll employment was 1 million lower at the end of 2025 than previously thought. Average monthly payroll growth for 2025 was revised down from roughly 50,000 to 15,000.
TRUMP MAY EASE STEEL AND ALUMINUM TARIFFS, TOP TRADE OFFICIAL HINTS
Inflation has …
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