US economy contracts by 0.5% in Q1

By Gokhan Ergocun

ISTANBUL (AA) - The US economy has contracted by 0.5% in the first quarter of 2025, compared to the previous quarter, the third reading of the Bureau of Economic Analysis (BEA) showed on Thursday.

The GDP data was revised down from the second reading's 0.2% contraction.

The BEA said the decrease in GDP in the first quarter primarily reflected an increase in imports, which are a subtraction in the calculation of GDP, and a decrease in government spending.

"These movements were partly offset by increases in investment and consumer spending," it said.

The revision is primarily reflecting downward revisions to consumer spending and exports that were partly offset by a downward revision to imports, it added.