Washington DC, April 30 -- The US economy contracted in the first quarter of 2025, marking its first decline since the pandemic recovery began, as a sharp jump in imports ahead of impending tariffs and slower consumer spending weighed on growth.

This pullback follows an average growth rate of roughly 3% annually over the past two years.

Net exports alone reduced GDP by nearly 5%, registering the steepest drag on record.

In contrast, business investment in equipment surged by 22.5% on an annualised basis, making it the report's strongest growth area.

Since imports represent foreign production, they are deducted from GDP calculations, leading to a substantial negative contribution.

These higher imports also flowed into business invento...