Economy shrank in first quarter, signaling major warning

Published April 30, 2025 8:33am ET



The economy unexpectedly contracted at a 0.3% annual rate in the first quarter of 2025, a preliminary reading dragged down by a historic increase in imports as families and businesses try to get ahead of President Donald Trump‘s tariffs.

The data, adjusted for inflation, were published Wednesday by the Bureau of Economic Analysis in its first report on GDP for the first quarter.

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