The Gross Domestic Product (GDP) of the United States experienced a contraction of less than 0.1% during the first three months of the year compared to the last quarter of 2024, according to the second reading of the data published by the US Economic Analysis Office. In annualized terms, The contraction of the largest world economy in the first quarter was 0.2%a tenth less than initially estimated, contrasting with the expansion of 2.4% observed in the fourth quarter of 2024.
This contraction represents the first time that the US economy experiences a setback from the first quarter of 2022, when GDP decreased by 1% in annualized quarterly data.
According to the Office of Economic Analysis, «the decrease in real GDP in the first quarter mainly reflected an increase in imports, which are subtracted from the calculation of GDP, and a decrease in public spending.»
The upward revision of one tenth in the annualized Evolution of GDP compared to the preliminary data published at the end of April indicates a greater improvement in investment, which was partially compensated by a downward review in consumption spending.
Compared to the fourth quarter of 2024, the fall of real GDP in the first quarter was mainly due to a rebound in imports, a deceleration in consumption spending and a decrease in public spending. These factors were partially counteracted by an increase in investment and exports.