The US economy contracted more than expected in the first quarter of 2022. The Bureau of Economic Analysis (BEA) reported that GDP fell 1.6 percent year on year. A 1.5 percent decrease was expected.

Initially, it was estimated that from January to March 2022 US economy Shrinked by 1.4 percent. In the second calculation, the GDP was -1.5%. Economists polled by Reuters also expected this result. However, the final account showed a decrease of 1.6%.

According to the BEA, the 0.1 point decline was driven by a slower-than-expected increase in consumer spending. This was partially offset by increased private investment in stocks.

Economy in the United States

According to CNN, the latest data adds to fears of an impending recession as economic growth has been negative since the first quarter.

“The final US GDP for the first quarter was -1.6%. It was expected to fall to -1.5%, but the difference between the projected value and the present value is not significant if we consider the value from the previous period. Then the GDP was 6.9% “. – Dom Maklerski TMS Brokers wrote in the comment.

The US economic growth rate in the fourth quarter of 2021 was 6.9% as a result of 2.7%. higher than in the corresponding period of 2019.

Reuters, CNN, TVN24 Business

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