HASSETT: "It's a fantastic [GDP] report — 4.3%. It's just about as good as GDP numbers get... these numbers are showing that @POTUS' trade policy, and his supply-side policy... is having a big effect." pic.twitter.com/TpL6mdeKNZ
— Rapid Response 47 (@RapidResponse47) December 23, 2025
The US economy grew 4.3% in real gross domestic product in Q3 (annualized), the best quarter of growth in the past two years. It exceeds the 3.8% growth in Q2 that had largely been seen as driven by rebalancing of the trade deficit. It's the first BEA analysis of overall economic activity since September, thanks to the Schumer Shutdown:
Real gross domestic product (GDP) increased at an annual rate of 4.3 percent in the third quarter of 2025 (July, August, and September), according to the initial estimate released by the U.S. Bureau of Economic Analysis.
In the second quarter, real GDP increased 3.8 percent. Due to the recent government shutdown, this initial report for the third quarter of 2025 replaces the release of the advance estimate originally scheduled for October 30 and the second estimate originally scheduled for November 26.
The increase in real GDP in the third quarter reflected increases in consumer spending, exports, and government spending that were partly offset by a decrease in investment. Imports, which are a subtraction in the calculation of GDP, decreased.
Just to clarify: "real GDP" already accounts for inflation. This is growth above the rate of inflation, annualized for comparative purposes. The last six months of economic activity has shown a combined growth of 4.0% or a bit better, which is a fantastic momentum by anyone's reckoning.
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