US Economic Growth Slows to 0.7% Amid Uncertainty Over Iran Conflict

The US economy's growth rate for the last quarter of 2025 has been revised down to 0.7%, significantly lower than the previously reported 1.4%. This slowdown is attributed to the historic government shutdown, which negatively impacted GDP by 1.16 percentage points. Exports saw a particularly sharp decline, revised to -3.3%. As the economy grapples with the fallout from the ongoing conflict with Iran, which has driven up oil prices and inflation, consumer spending remains cautious. The labor market is also showing signs of strain, with job losses and rising unemployment rates. Economists are concerned about the potential for stagflation as these economic challenges unfold.

Key Details: • GDP growth for Q4 2025 revised down to 0.7% • Government shutdown reduced GDP by 1.16 percentage points • Exports revised down to -3.3%, impacting overall economic output • Unemployment rate rose to 4.4% with 92,000 jobs lost in February • Consumer spending growth remains stagnant at 0.4% in January