Mar 17, 2026
negativeU.S. Economy Entered 2026 at Weakest Pace Since Pandemic as Q4 GDP Revised Down to 0.7%, Raising Stagflation Fears
The U.S. Bureau of Economic Analysis revised Q4 2025 GDP growth sharply lower to a 0.7% annualized rate — half the government's initial estimate and well below economists' 1.4% forecast — painting a troubling portrait of an economy that was already weakening before the Iran war erupted and sent oil prices soaring. The data, combined with a January job market that shed 92,000 positions and lingering above-3% inflation, has amplified stagflation fears ahead of a critical Federal Reserve meeting.

