The headline reads: "US Q4 GDP Growth Cut In Half To Just 0.7% After Revision". "The BEA reported that Q4 GDP in the US was slashed by half after the 1st revision of data: instead of 1.4%, the US grew just 0.7% in the last quarter of 2025 (0.660% to be precise), and far below estimates of a 1.4% print. It was also the lowest GDP print since Q1 2025. "
This all seems very confusing to me and I like to think of myself as an amateur economist. Is the 1.4%, now 0.7%, an increase in real GPD over the quarter, or is it current GDP, or is it annualized? Is this a minor adjustment or is it big? And how do they calculate "real" GDP vs "nominal" GDP?
I like to look at the actual numbers, which the BEA hides pretty well. Look at Related Materials, Tables Only, Table 3, and then Gross Domestic Product (GDP), Q4 2025 and there it is: 31,442.5. This is only $48 billion less than the previous estimate and so it is no big deal - it is just basically a rounding error. This is not even worth recalculating the debt to GDP ratio.

