President Donald Trump. , Photo Credit: AP
The US economy shrunk at an annual speed of 0.3% from January to March, the first decline in three years. This was slowed with an increase in imports as companies in the United States tried to bring foreign goods before President Donald Trump imposed a large -scale tariff.
January-March expansion in GDP- Country production of countries and services- was below 2.4% in the last three months of 2024. Import shaved 5 percent increase in the first quarter. Consumer spending also slowed down rapidly. The cost of the federal government was 5.1%.
But the business investment increased on 21.9% clip as companies put money in equipment. And a category within GDP data that measures the underlying strength of the economy, increased a healthy 3% annual rate from January to March, above 2.9% in the fourth quarter of 2024. This category includes consumer expenses and private investment, but except for unstable items such as exports, inventions and government expenses.
Trump had inherited a solid economy that increased by the Federal Reserve despite high interest rates to fight inflation. Their irregular trade policies – including 145% tariffs on China – have paralyzed businesses and threatened to increase prices and hurt consumers.
Published – April 30, 2025 06:34 pm IST
