May 5, 2025
U.S. Real GDP Declines in Q1
What We're Showing
This chart shows the seasonally adjusted annualized advance estimate of U.S. real GDP change by quarter from Q1 2021 to Q1 2025 using data from the U.S. Bureau of Economic Analysis.
The mini chart breaks down the Q1 2025 real GDP change of -0.3% into the different components that contribute to the final figure.
Key Takeaways
- Real GDP growth in the U.S. changed by -0.3% in Q1 2025, the first decline since Q1 2022.
- The annualized nature of the figure means that if 2025's remaining three quarters are like this one economically, U.S. real GDP would decline by -0.3% this year.
- A significant increase in imports (likely from businesses front-running Trump's tariffs) led to the decline in GDP. Imports are counted against GDP growth, as they represent spending on foreign rather than domestic production.
- A slight reduction in government spending contributed to the GDP decline, potentially caused by government contract cuts by the Department of Government Efficiency.