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President Points to “Costly” Government Shutdown as GDP Expansion Hits Speed Bump
By Open Chronicle Staff | United States
WASHINGTON — New data released Thursday indicates that the U.S. economy experienced a notable slowdown in the fourth quarter of 2025, a cooling trend that President Trump was quick to attribute to the recent and protracted federal government shutdown.
According to the Department of Commerce’s preliminary estimate, Gross Domestic Product (GDP) grew at an annualized rate of 1.8% from October through December. This represents a significant deceleration from the robust 3.1% growth recorded in the third quarter. The report cited a dip in consumer spending and a sharp contraction in federal outlays as primary contributors to the tepid performance.
The President addressed the figures during a brief press availability at the White House, placing the blame squarely on the legislative impasse that shuttered several federal agencies late last year.
“We had a fantastic trajectory going, but the shutdown—which was unnecessary, put a massive dent in our momentum,” the President told reporters. “When you stop the gears of the greatest economy in the world for weeks on end, it’s going to show up in the numbers. This is a temporary ‘shutdown slump,’ and we are already roaring back in the first quarter of ’26.”
Economists, however, offer a more nuanced view of the slowdown. While acknowledging that the halt in federal paychecks and government contracts dampened quarterly figures, analysts also pointed to rising interest rates and a cooling housing market as underlying factors.
“The shutdown certainly clipped about half a percentage point off the growth rate,” said a senior market strategist. “But we are also seeing the natural exhaustion of the post-election surge. Businesses are becoming more cautious as trade uncertainties and global inflationary pressures persist.”
The fourth-quarter data also highlighted a widening trade deficit, as imports surged while exports remained flat. This trend has fueled the administration’s renewed calls for stricter tariff measures to protect domestic manufacturing, a cornerstone of the President’s “America First” economic platform.
Despite the slowdown, the labor market remains a bright spot, with unemployment holding near historic lows. White House economic advisors remain optimistic, forecasting that the administration’s deregulation efforts and proposed tax adjustments will trigger a “springboard effect” for the remainder of 2026.
Congressional leaders from across the aisle countered the President’s narrative, arguing that the economic cooling is a result of fiscal volatility and the administration’s own trade policies. As the 2026 midterm season approaches, the health of the economy is expected to remain the central battlefield for both parties.