US economy shrinks for first time since 2022

In the first three months of 2025, US gross domestic product (GDP) contracted 0.2% after a surge in imports caused by President Donald Trump's tariffs, marking the first decline since 2022 in the world's largest economy.

GDP in the January-March period fell 0.2%, down 0.1% from a previous estimate but still a big decline from the 2.4% growth in the final quarter of 2024, according to data from the US Commerce Department.

The decline followed a sharp increase in imports as businesses stocked up ahead of the US president's imposition of tariffs on most trading partners, especially China.

The report said the first-quarter GDP decline mainly reflected an increase in imports, a slowdown in consumer spending and a decline in government spending.

Analysts say the first-quarter decline will not affect full-year GDP, as the surge in imports is unlikely to be repeated in the second quarter.

However, in a separate report released the same day, the US Department of Commerce’s Bureau of Economic Analysis (BEA) warned that US corporate profits fell sharply in the first quarter and could continue to be squeezed this year as tariffs threaten to dampen business expansion. Specifically, the report said that current manufacturing profits, after adjusting for inventories and depreciation, fell by $118.1 billion last quarter.

President Donald Trump's sweeping import tariffs have cast a shadow over the economy, dampening business and consumer sentiment and causing unprecedented volatility in financial markets, according to the report./.

According to VNA

Source: https://baothanhhoa.vn/nen-kinh-te-my-suy-giam-lan-dau-tien-ke-tu-nam-2022-250382.htm