Suche
Mein Konto
US economy is shrinking: Trump's tariff policy is starting to have an impact!
The US economy contracted by 0.2% in the first quarter of 2025. Higher imports and lower spending are weighing on growth.
US economy is shrinking: Trump's tariff policy is starting to have an impact!
The US economy contracted an annualized 0.2 percent in the first quarter of 2023, according to the Commerce Department's second estimate. A decline of 0.3 percent had previously been forecast. In the fourth quarter of 2022, the economic data showed growth of 2.4 percent. The reasons for this decline lie in higher imports and lower government spending, which weighed on economic growth, reports Daily Mirror.
Despite the negative growth, there are also positive aspects that support the economic situation. Investment, consumer spending and exports have increased over this period. Private consumer spending rose, albeit only slightly, by an annualized 1.2 percent - which represents the lowest increase since mid-2023. Higher investment also contributed to a slight upward revision in GDP figures, but could not fully offset the decline in consumer spending. These positive factors were also highlighted in a report by n-tv highlighted.
Influence of foreign trade
A major factor causing the decline was the 42.6 percent increase in imports, which weighed heavily on growth. Foreign trade negatively impacted GDP by almost five percentage points. These developments raise questions about the impact of tariff policies, particularly under Donald Trump's presidency, which could portend a bleak outlook for the economy. Nevertheless, despite these negative figures, the US Federal Reserve does not see any noticeable slowdown in the economy.
In its economic report, the Beige Book, the Fed highlights solid growth trends that suggest the economic foundation remains stable. However, comparing US growth figures with European countries is difficult because the US rate is annualized and represents an annual projection; To compare, the US rate would have to be divided by four.
Overall, the first quarter of 2023 shows a differentiated picture of the US economy, including both declines and positive growth factors. The coming months will show how this dynamic will impact America's economic development.