THE United States economy contracted by 0.5 per cent in the first quarter of this year compared to the same period last year, marking the first decline in gross domestic product (GDP) in three years, according to final data released by the US Commerce Department on Thursday.
The drop in output during the January to March period was largely driven by a surge in imports, as American firms moved to stockpile foreign goods in anticipation of wide-ranging tariffs announced by President Donald Trump.
Growth was “stifled by rising imports,” reported Bernama-Xinhua, citing the Commerce Department’s figures. The rush to bring in goods came ahead of Trump’s implementation of sweeping tariffs on key trading partners – a move that has raised concerns over potential disruptions to the global economy.
The latest figures signal a turbulent start to the year for the world’s largest economy, with trade tensions and policy uncertainty contributing to a cautious business environment. - June 27, 2025
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