The U.S. economy shrank in the first quarter of this year
According to the Financial Times, the latest economic statistics released by U.S. officials show that the country's gross domestic product in the first three months shrank by 0.3% compared to the same period last year, marking the first negative growth since 2022. In the fourth quarter of last year, the U.S. economy grew by 2.4%. The report also quotes economists who point out that the economic contraction in the U.S. in the first quarter of this year is largely due to a 41% surge in imports, making it an exaggerated result. The report further notes that the trade war initiated by President Trump has distorted the U.S. economy, benefiting the financial banking sector while adversely affecting consumer-facing industries, with consumer confidence significantly declining.
Today's headline news from The Guardian is that the U.S. economy shrank in the first quarter of this year, raising market concerns that the trade war initiated by President Trump will lead to a global economic downturn. Although Trump attempts to shift the blame for the economic contraction onto his predecessor Biden, economic analysts believe that the main reason is the sudden increase in imports.
