Home / Business and Economy / US Economy Stumbles as Stagflation Fears Rise
US Economy Stumbles as Stagflation Fears Rise
14 Mar
Summary
- Economic growth estimate for Q4 2025 slashed to 0.7 percent.
- Falling exports, consumer, and government spending drive slowdown.
- Stagflation fears grow amid rising prices and falling growth.
A recent government report indicates a significant slowdown in the US economy, revising the fourth quarter of 2025 growth estimate down to 0.7 percent. This downgrade stems from declining exports, reduced consumer spending, and lower government outlays.
Analysts are increasingly worried about the potential for stagflation, a condition characterized by rising prices alongside economic stagnation. This concern is amplified by rising oil prices, particularly in the context of the Iran War, and recent inflation data showing sticky core PCE inflation above 3 percent.
Prediction markets reflect these anxieties, with odds of a 2026 recession climbing significantly. Economists warn that the current environment, marked by falling GDP growth and high oil prices, could negatively impact all American consumers.
