“The fall in GDP reflects the reduction in private investments, exports, (…) public spending by the federal state and local governments, while imports (…) increased,” explained the Department of Trade in a statement. A consensus of analysts had estimated growth of 1.1%.
The report highlighted as factors in this decline the declines in investment in inventories and the reduction in exports, due to the persistent problems in global supply chains and the alterations caused by the Russian invasion of Ukraine.
However, he noted that consumer spending, which accounts for two-thirds of economic activity in the US, grew by 2.7%.
In 2021, the expansion of the Gross Domestic Product of the United States grew 5.7%, the largest expansion since 1984. But at the beginning of 2022, the wave of COVID caused by the Omicron variant and inflation weighed down the economic recovery.
The GDP data for the first quarter comes a week before the Federal Reserve (Fed) holds its next monetary policy meeting, in which it is expected to raise the interest rate 50 basis points, to the .75% range. and 1% to try to curb the high inflation in the country.
With information from AFP and EFE.
