The first full-year GDP estimate summarized a year with sharp quarterly swings. Imports and inventories made some quarters look weaker or stronger than domestic demand alone.
Annual totals smooth timing
Looking across the year reduced the effect of goods crossing a border just before or after a quarter ended.
Real means inflation-adjusted
Nominal output can rise because of higher prices, while real GDP attempts to measure changes in production.
Later estimates can change the history
More complete source data and annual revisions improve the record after the first publication.
Sources
- U.S. Bureau of Economic Analysis, GDP Advance Estimate, Fourth Quarter and Year 2025.