Economic Numbers Portraying the United States Economy
The State of the Union in Numbers.
A Quick and Short Review
In 2025, the economy expanded as GDP increased, inflation decreased slightly, and the size of imports and exports shifted. These and other measures provide a snapshot of economic activity, prices, and the labor market heading into 2026.
How was the economy doing?
In 2025, the economy grew and employment remained steady, while inflation and interest rates fell.
Gross domestic product (GDP) reached $30.8 trillion in 2025. Real GDP (rGDP), which accounts for inflation, increased by 2.2%, equal to the 2000 to 2024 average annual rate.
Year-over-year inflation — the rate at which consumer prices increase — was 2.4% in January 2026. The average monthly inflation rate in 2025 was 2.6%, slightly lower than the 2024 average rate of 2.9%. Housing was the largest contributor to monthly inflation growth.
The Federal Reserve (Fed) lowered the federal funds rate three times in 2025; it currently sits between 3.5% and 3.75%. This range guides the rate at which banks lend to each other, while the effective federal funds rate reflects the average rate banks actually pay. Adjusting this target range is one way the Fed pursues its dual mandate of controlling inflation and maximizing employment.
The unemployment rate was 4.3% in January 2026. A couple months prior, in November 2025, the rate was the highest since late 2021, at 4.5%.
The average annual labor force participation rate decreased slightly to 62.4% in 2025 after staying the same from 2023 to 2024. The rate is the percentage of the population ages 16 and older who are either employed or actively seeking work. It’s been trending downward since 2000, due to the nation’s aging population.
What’s going on with international trade?
New tariffs and global economic shifts altered US trade flows in 2025. Looking at how imports and exports changed helps explain the nation’s trade balance and its connection to the global economy.
In 2025, the US imported $4.3 trillion and exported $3.4 trillion in goods and services, resulting in a $901.5 billion trade deficit. This deficit was lower than in 2024 due to higher exports and lower imports throughout 2025.
In 2025, the average monthly effective tariff rate was 7.9%. The rate shows how much the US collects in customs duties as a percentage of the total value of imported goods. However, imports may have different tariff rates (or none at all) depending on various factors like country of origin, product type, trade agreements, and much more.
In FY 2025, the federal government collected $194.9 billion, or 4% of total revenue, from customs duties (tariffs and other import fees). It was more than two times larger than it was in FY 2024. As of January, approximately $117.7 billion in customs duties have been collected for FY 2026, already exceeding the FY 2024 total.
The nation’s top trading partners in 2024 were Mexico, Canada, and China (when adding imports and exports). Mexico became the nation’s top trading partner for the first time. Trade with the top six trading partners accounted for 48% of the total.
Bureau of Economic Analysis for graphs and explanations.
Additional Contributors: “Data analysis and processing” by USAFacts