Effect of epidemic: Big blow to America, economy shrank at 1.4 percent in the first quarter

The US economy has suffered a major setback amid the global crisis. The US economy shrank at an annual rate of 1.4 percent in the first quarter. The Department of Commerce of the Bureau of Economic Analysis has given this information. This is the first major contraction in the US economy since the start of the Corona pandemic.

the recession caused by the corona pandemic

The US economy shrank in the last quarter for the first time since the pandemic hit recession two years ago. However, consumers and businesses have continued to spend as a sign of flexibility. Weak performance does not mean that a slowdown is likely in the coming months. Most economists are expecting a rebound in the April-June quarter.

Steady spending by households and companies suggests the economy will continue to expand this year, even as the Federal Reserve plans to aggressively raise rates to fight inflationary growth. Q1 growth was primarily hampered by slower clearances in stores and warehouses and a sharp decline in exports.

The Commerce Department's estimate Thursday for first-quarter GDP The country's total output of goods and services fell well below the 6.9% annual growth in the fourth quarter of 2021. The economy as a whole has grown by 5.7% for 2021.

The US economy is facing a variety of pressures. This has raised concerns about its strength and concerns about a possible slowdown next year. Inflation is taking a toll on people as gas and food prices rise, borrowing costs are rising and the global economy is battered by Russia's invasion of Ukraine and China's COVID-19 lockdowns.

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