The US economy recorded negative growth in the first quarter of this year.
The U.S. Department of Commerce announced on the 28th that the U.S. gross domestic product (GDP) grew at an annualized rate of -1.4% in the first quarter from January to March.
Earlier, ‘Archyde.com’ news agency compiled the forecasts of experts and predicted that the first quarter growth rate would be 1.1%, and ‘Dow Jones’ predicted 1%, respectively.
The last negative growth rate before this announcement was in the second quarter of 2020, and in the third quarter thereafter, it recorded a growth rate of more than 33% and rebounded sharply, followed by positive growth for the sixth consecutive quarter.
One of the main factors driving the negative economic growth in the United States was the increase in the trade deficit. I cried.
Archyde.com reported that the trade deficit lowered the overall GDP by 3.2 percentage points.
Other factors, including declining private sector inventory investment and declining government spending, the spread and inflation of the novel coronavirus omicron mutation, and the Russian-Ukrainian war, were all contributing factors, experts analyzed.
However, in a statement released on the same day, President Joe Biden pointed out that the negative growth of the US economy is due to the coronavirus pandemic, Russia’s invasion of Ukraine, and global inflation.
Despite rising consumer spending and business investment, President Biden said the US economy continues to show resilience to historic challenges.
The US growth rate is announced three times as a preliminary estimate, a provisional value, and a final value.
VOA News
* This article referenced Archyde.com.