What is GDP? U.S. economy contracts for the first time since pandemic
The U.S. economy went into reverse having its worst quarter since Covid.
The U.S. Gross Domestic Product stood at an annualized rate of -0.3% in the first quarter, the Commerce Department said Wednesday. This is the lowest rate since 2022 and a significant slowdown compared to the 2.4% growth rate in the fourth quarter and falls well short of economists' forecast of 0.8%.
In 2024, the last year of former president Joe Biden’s term, U.S. economy grew by 2.8 per cent.
Meanwhile, President Donald Trump went to social media to ask his supporters to "be patient" and blamed the previous administration for leaving him a weak economy, even though data indicated the economy was performing well when he assumed office.
What is GDP?
GDP stands for Gross Domestic Product, which is the total monetary value of goods and services produced within a country. GDP serves as a benchmark to gauge the economic performance of a country.
Why is the stock market down today?
U.S. stocks dropped after the Commerce Department release the latest GDP report showing a contraction in U.S. economy.
At the start of trading on Wall Street, the S&P 500 fell by 2.05%, the Dow Jones Industrial Average dropped 1.72%, and the tech-focused Nasdaq index declined by 2.53%.