AP Debunks Trump’s Claim That US Has World’s “Hottest Economy”

Donald Trump has spent the past year touting his accomplishments while criticizing the record of his predecessor, former President Joe Biden.

Inflation remains elevated as the cost of goods such as furniture, clothing, and groceries continues to rise.

But much of this rhetoric is based on false or misleading claims — many of which were expected to be part of the president’s address to the nation, Melissa Goldin reported for the Associated Press (AP).

Trump often says the US is now “the hottest country anywhere in the world” after years as a “dead country.”

The US economy was hardly “dead” when Trump returned to office last year.

In his second term, it has generally performed strongly, though it got off to a bumpy start.

In 2024, the final year of Biden’s presidency, US gross domestic product (GDP) grew 2.8%, adjusted for inflation — faster than any wealthy country except Spain. The economy also expanded at a healthy pace from 2021 through 2023.

GDP shrank for the first time in three years during the first quarter of 2025. Growth rebounded in the second half of the year but slowed again in the fourth quarter. Annual GDP growth in 2025 was 2.2%.

A key measure of inflation fell to nearly a five-year low in January. However, according to the Federal Reserve’s preferred gauge, inflation remains elevated as the cost of goods such as furniture, clothing, and groceries continues to rise.

Companies have also sharply reduced hiring. Employers added just 181,000 jobs in 2025 — the fewest outside a recession since 2002.

Economists cite multiple factors, including uncertainty created by tariffs and artificial intelligence.

Many firms also hired aggressively after the pandemic and have since paused expansion.

The US stock market performed well last year but underperformed several foreign markets. The benchmark S&P 500 rose 17% — solid, but below gains of 71% in South Korea, 29% in Hong Kong, 26% in Japan, 22% in Germany, and 21% in the United Kingdom.