Economist Art Laffer publicly acknowledged on national television that economists had underestimated the strength of the U.S. economy under President Donald Trump. “We economists were horribly WRONG on the strength of the economy! Many were looking for growth no faster than 1.5%, you point out +4.3%!” Laffer stated, highlighting the significant gap between forecasts and actual performance.

Q3 2025 GDP data, released on December 23, revealed a 4.3% annualized growth rate, exceeding Bloomberg’s median forecast of 3.2% by a substantial margin. Of 61 economists surveyed, 60 failed to predict this outcome, underscoring how conservative the projections had been. Laffer attributed the robust growth to strong consumer spending, low unemployment, and economic policies promoting deregulation and strategic tariffs.

The revelation reinforces President Trump’s claims of an economic boom and demonstrates how policy decisions, including pro-growth measures, can significantly outpace expert expectations. Analysts note that this performance highlights the challenges economists face when forecasting under dynamic policy conditions and volatile market behavior.

The Q3 2025 results mark a high point in the Trump administration’s economic record, signaling sustained expansion and confidence in consumer-driven growth. Laffer’s admission serves as a rare acknowledgment from the academic and forecasting community that real-world outcomes can defy conventional expectations.