The economy of USA shrunk at the beginning of the year, held by the weaker consumer expenditure and even more imports.
US GDP decreased at a rate of 0.2% on an annual basis in the first quarter, as Bureau of Economic Analysis’s second estimate today (29.5.2025) showed an annual estimate. This was compared to the initially reported reduction of 0.3%.
The main lever for the growth of the economy – consumer costs – proceeded by 1.2%, compared to an initial estimation of 1.8%. Net exports decreased by 4.9 percentage points, slightly more than the first provision, according to Bloomberg.
GDP data are often revised as more data are available, allowing the government to improve its estimation. The first provision, published in late April, showed that the economy was first shrunk by 2022. The final estimate is expected next month.