US Economy Takes First Downturn Since 2022 as Q1 GDP Falls 0.3%

For the first time since early 2022, the US economy has experienced negative growth.

According to the Bureau of Economic Analysis, GDP contracted at a 0.3% annual rate in the first three months of 2025, underperforming economists’ predictions.

The downturn follows a strong fourth quarter in 2024 when the economy grew at 2.4%. A major factor in the decline was increased imports, which count against GDP measurement.