Agency News Desk | June 28, 2025 —
The U.S. economy contracted in the first quarter of this year for the first time in three years, according to data released Thursday by the U.S. Department of Commerce. The latest figures show that the Gross Domestic Product (GDP) fell at an annual rate of 0.5% from January to March, revising previous estimates downward by 0.3 percentage points.
The decline is attributed mainly to a sharp rise in imports and sluggish consumer spending. The report notes that imports surged by 37.9% during the quarter, which subtracted 4.66 percentage points from the overall GDP. Economists believe that American businesses rushed to purchase foreign goods in anticipation of upcoming tariffs, which contributed to the spike in imports.
Additionally, consumer spending—which accounts for nearly 70% of the U.S. economy—rose by only 0.5%, significantly lower than the earlier estimate of 1.2%.
Experts suggest that the contraction may be partly linked to economic policies introduced by former President Donald Trump, which had ripple effects on the global economy and contributed to trade uncertainties.
The downturn in Q1 marks a significant development, raising concerns over the resilience of the U.S. economy amid shifting trade dynamics and consumer behavior.
(Source: CCTV+)
