US economic growth slows to 1.4 percent in the fourth quarter as government shutdown impacts activity

US economic growth slowed to 1.4 percent last quarter amid a record government shutdown. Analysts expect tax cuts and AI investment to boost activity this year.

The U.S. Commerce Department's Bureau of Economic Analysis (BEA) released an advance estimate on February 20, 2026, showing that real gross domestic product in the United States USUS increased at an annualized rate of 1.4% during the fourth quarter. This growth rate marks a sharp deceleration from the 4.4% pace seen in the third quarter and is significantly lower than the 3.0% expansion projected by economists in a Reuters survey. The report’s release was notably delayed following a record 43-day U.S. federal government shutdown that occurred last year, which hindered the timely collection and processing of economic data.
A container ship is unloaded at the Port of Los Angeles in San Pedro, California, U.S., on May 1, 2025. REUTERS/Mike Blake
A container ship is unloaded at the Port of Los Angeles in San Pedro, California, U.S., on May 1, 2025. REUTERS/Mike Blake
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