U.S. Economy Shrinks Slightly in Early 2025
(MENAFN) The United States economy experienced a contraction of 0.2 percent during the first quarter of the year when measured on a quarterly basis, according to data released on Thursday by the Bureau of Economic Analysis (BEA).
The BEA reported that the U.S. gross domestic product (GDP) fell at an annualized rate of 0.2 percent in the initial quarter of 2025, based on the bureau's second estimate.
This marked a slight improvement from the initial estimate, which had indicated a decline of minus 0.3 percent.
According to the bureau, the reduction in GDP for the first quarter was largely driven by a rise in imports, noting that "imports are a subtraction in the calculation of GDP," alongside a drop in government expenditures.
"These movements were partly offset by increases in investment, consumer spending, and exports," the BEA further explained, indicating some positive factors that helped cushion the overall economic decline.
Additionally, the GDP figure was adjusted upward by 0.1 percentage points from the initial forecast.
This revision primarily reflected an upward change in investment figures, which was somewhat balanced by a downward adjustment in consumer spending, the bureau pointed out.
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