State of the Economy in Numbers
In 2024, the economy expanded as GDP increased. In 2025, 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.
The basics
$29T
2.7%
$840B
How is the economy doing?
Employment remained steady in 2025, while inflation and interest rates fell.
Gross domestic product (GDP) reached $29.3 trillion in 2024. Real GDP (rGDP), which accounts for inflation, increased by 2.8%, above the 2000 to 2023 average annual rate of 2.2%.
Real GDP increased 2.8% from 2023 to 2024.
Annual percent change in real gross domestic product (GDP)
Year-over-year inflation — the rate at which consumer prices increase — was 2.7% in December 2025. 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.
Year-over-year inflation — the rate at which consumer prices increase — was 2.7% in December 2025.
Year-over-year percent change of CPI-U, all items, seasonally adjusted
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 Federal Reserve lowered the federal funds rate. It sits between 3.5% and 3.75%.
Federal funds effective rate, by month
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 unemployment rate was 4.3% in January 2026.
Unemployment rate, seasonally adjusted
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.
The average annual labor force participation rate decreased to 62.4% in 2025.
Labor force participation rate, annual average
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.
From January to November 2025, the US imported $4.0 trillion and exported $3.1 trillion in goods and services, resulting in a $839.5 billion trade deficit. This deficit was higher than in the same months in 2024, likely due to the jump in imports during the first half of 2025.
From January to November 2025, the US had a $839.5 billion trade deficit.
Trade balance, by component, not adjusted for inflation
Over the first eleven months of 2025, the average monthly effective tariff rate was 7.5%. 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.
Over the first eleven months of 2025, the average effective tariff rate was 7.5%.
Monthly average effective tariff rate (customs duty revenue as a share of good imports)
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 December, approximately $90.0 billion in customs duties have been collected for FY 2026, already exceeding the FY 2024 total.
The federal government collected nearly $200 billion from customs duties in FY 2025.
Cumulative monthly customs duties revenue, not adjusted for inflation
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.
The nation’s top trading partners in 2024 were Mexico, Canada, and China.
Share of total trade value (imports + exports), by country
