US economy contracts for first time since 2022
The U.S. economy recorded its weakest performance since 2022 in the first quarter of the year, with gross domestic product (GDP) contracting at an annualized rate of -0.3%, according to the Commerce Department on Wednesday.
Gross domestic product, which measures all the goods and services produced in the economy, registered at an annualized rate of -0.3% in the first quarter, the Commerce Department said Wednesday, News.Az reports, citing CNN.
That’s a sharp slowdown from the fourth quarter’s 2.4% rate, and much worse than economists projected.
The Trump administration has been on a chaotic tariff spree over the past several months, escalating trade tensions with China and unsettling Americans. Most economists say Trump’s monumental bid to reshape global trade is likely to send inflation climbing in the United States and even trigger a recession.
The economy’s decline was driven by a wider trade deficit — a result of Americans front-running purchases to beat Trump’s tariffs — and cutbacks in government spending, according to a release. Imports skyrocketed from -1.9% in the fourth quarter to 41.3% in the first three months of the year. Meanwhile, exports registered at a 1.8% rate.
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