Trump Sent the Economy Into Free Fall, New Report Shows

So much for Donald Trump’s “Golden Age.” It looks like the United States’ economic growth is officially in free fall.

Between October and December, the United States’ real gross domestic product fell from 4.4 percent to just 0.5 percent, the U.S. Bureau of Economic Analysis reported Thursday.

That figure is significantly less than the agency’s second estimate of 0.7 percent growth, reported last month.

The government reported that the economy grew 2.1 percent last year, compared to 2.8 percent in 2024 and 2.9 percent in 2023. If GDP growth is beneath two percent annually, that can typically be considered a recession.

The surprising economic slow-down in the fourth quarter can be attributed to the government shutdown, which cut federal spending and investment by 16.6 percent and trimmed 1.16 percent points off of growth in Q4. Consumer spending expanded at a pace of 1.89 percent, down from the previous estimate of 3.5 percent in the second quarter.

This weakened economy has set the stage for Trump’s increasingly expensive war in Iran. The president’s reckless military campaign in the Middle East has triggered significant disruptions in global commerce and sent energy prices surging.