U.S. Economy Shrinks 0.2 Percent in Early 2025
(MENAFN) The US economy shrank by 0.2% in the first quarter of 2025 on a quarterly basis, according to data released Thursday by the Bureau of Economic Analysis (BEA).
The BEA’s second estimate showed a less severe decline than initially reported, with GDP dropping at an annualized rate of 0.2%, compared to the preliminary figure of minus 0.3%.
The bureau attributed the GDP contraction mainly to a rise in imports—which are subtracted in GDP calculations—and a reduction in government expenditures.
"These movements were partly offset by increases in investment, consumer spending, and exports," the BEA added.
The revision from the initial report reflects a 0.1 percentage point upward adjustment, driven by stronger investment figures that were partially balanced out by a downward revision in consumer spending, the agency explained.
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