US economy shrinks

First quarter GDP — the nation’s total output of goods and services — fell far below the 6.9% annual growth in the fourth quarter of 2021.

By

National News

April 28, 2022 - 4:17 PM

Photo by Pixabay.com

WASHINGTON (AP) — The U.S. economy shrank in the first three months of the year, and faces threats from high inflation and rising interest rates, yet economists foresee a return to growth for the rest of 2022 based on the strength of the job market and consumer spending.

The 1.4% quarterly decline in gross domestic product — the first contraction since the pandemic hit in 2020 — is not likely a prelude to recession, economists say. That may bring little comfort to President Joe Biden and Democrats, who face mid-term elections this year in which rising prices for food,…

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