The United States economy showed signs of deceleration in the fourth quarter, with GDP growth falling short of market expectations and marking a significant slowdown from the previous period.

Q4 Economic Performance

The latest GDP data revealed the US economy expanded at a 0.7% quarter-on-quarter rate in Q4, representing a substantial miss compared to economist forecasts. This performance indicates a notable cooling in economic activity as the year drew to a close.

Growth Momentum Analysis

The fourth quarter results show a marked deceleration in economic momentum. The actual growth rate of 0.7% represents exactly half the pace recorded in the previous quarter, highlighting the extent of the slowdown. Market participants had anticipated the economy would maintain its previous quarter's momentum at 1.4%, making the actual result a significant disappointment.

Economic Implications

The weaker GDP performance suggests the US economy faced headwinds during the final months of the reporting period. The substantial gap between expectations and actual results indicates that economic conditions may have been more challenging than previously anticipated by analysts and forecasters.

Goldman Sachs has revised its economic projections for India, reducing the GDP growth forecast for 2026 from 7% to 6.5%. This downward adjustment represents a notable shift in the investment bank's outlook for India's economic performance.

Forecast Revision Details

The revision shows Goldman Sachs' updated assessment of India's growth trajectory, with the new forecast indicating a more conservative outlook for the country's economic expansion. The adjustment brings down the expected growth rate by 0.5 percentage points from the previous projection.

Economic Outlook Impact

This forecast adjustment by Goldman Sachs reflects the investment bank's recalibrated expectations for India's medium-term economic performance. The revised projection suggests a more measured approach to India's growth potential over the forecast period.

The updated forecast represents Goldman Sachs' current view on India's economic trajectory, marking a shift from the previously more optimistic growth expectations for 2026.