US Economy Slows After Government Shutdown

Commerce Department report cites 43-day shutdown as key factor behind sluggish Q4 2025 GDP growth

Apr. 10, 2026 at 10:37pm

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A geometric abstract illustration using bold shapes and primary colors to conceptually represent the stagnation of economic growth due to political dysfunction.The economic toll of political gridlock is laid bare in the Commerce Department's downgraded GDP report.Washington Today

The U.S. economy grew at a sluggish 0.5% annual pace from October through December 2025, according to a report from the Commerce Department. This downgrade from previous estimates was attributed to the impact of a 43-day government shutdown that occurred last fall.

Why it matters

The government shutdown disrupted economic activity and led to a significant slowdown in the nation's GDP growth during the fourth quarter of 2025. This underscores the broader economic consequences of political gridlock and dysfunction in Washington.

The details

The Commerce Department's report showed the U.S. economy grew at an annual rate of just 0.5% in the fourth quarter of 2025, a downgrade from the previous estimate of 2.9% growth. Economists cited the 43-day government shutdown, which began in late September 2025, as a key factor behind the sluggish economic performance.

  • The government shutdown lasted 43 days, beginning in late September 2025.
  • The Commerce Department released its report on the Q4 2025 GDP growth on April 10, 2026.

The players

U.S. Commerce Department

The federal agency responsible for economic data and statistics, including the report on Q4 2025 GDP growth.

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The takeaway

This case highlights the significant economic toll that political gridlock and dysfunction in Washington can have, underscoring the need for lawmakers to find ways to avoid disruptive government shutdowns that hamper the nation's economic growth.