U.S. GDP Growth in Q2 2025
According to a recent estimate from the Bureau of Economic Analysis (BEA), the U.S. real Gross Domestic Product (GDP) increased at an annual rate of 3.8% in the second quarter of 2025. This information was released on Thursday morning.
The GDP growth can largely be attributed to a drop in imports. The initial estimate on August 28 indicated that the economy had actually grown at a rate of 3.3% during the same period, which exceeded earlier expectations.
This news follows a contraction of the economy in the first quarter of 2025, where the GDP fell by 0.5% annually. The decline was mainly caused by a rise in imports, as reported by various sources.
Thursday’s GDP figures come on the heels of a report from the Organization for Economic Cooperation and Development (OECD), which forecasted that U.S. GDP growth would sharply decrease from 2.8% in 2024 to around 1.8% in 2025, influenced by factors like tariffs and cuts in federal spending. The OECD further expects a modest growth of just 1.5% in 2026.
The Federal Reserve Bank of Atlanta also provides ongoing GDP growth estimates. As of September 17, their GDPNOW model projected a growth rate of 3.3% for the third quarter of 2025. The BEA’s advance estimate for third-quarter GDP is expected to be published on October 30.
In other economic news, wholesale inflation unexpectedly fell in August, with the Producer Price Index decreasing by 0.1%, according to the Bureau of Labor Statistics (BLS). Additionally, U.S. employment growth slowed, with only 22,000 new non-farm payroll jobs added last month.
The Federal Reserve announced its first interest rate cuts of the year on September 17, following ongoing discussions about the economy’s challenges. Fed Chairman Jerome Powell hinted at the possibility of further rate cuts, citing ongoing issues such as rising inflation and decreasing employment.
