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Federal Shutdown Slowed US Economy in Q4
The US economy grew slowly in late 2025. Growth was only 1.4 percent that quarter.
A record 43-day federal shutdown in Q4 2025 depressed the economy. The shutdown caused big drops in government spending.
For all of 2025 the US grew 2.2 percent. The shutdown depressed fourth quarter growth.
Klear Note — A federal shutdown stops government spending and services. It happens when Congress can't agree on a budget. Government spending is a big part of US economic growth.
Key Terms 3
- GDP
- Gross domestic product. The total value of goods and services a country produces.
- federal shutdown
- When the US government stops spending money and many workers go unpaid.
- Q4
- The fourth quarter. The last three months of the year (October, November, December).