In a surprising turn, the U.S. economy slipped into recession in the first quarter of 2025, marking the first contraction since 2022. Data released by the United States Department of Commerce shows GDP fell at an annualized rate of 0.3%, sending ripples across global markets.
Data at a Glance
- GDP contraction: -0.3% in Q1 2025 (annualized)
- First quarterly decline since Q1 2022
Expert Insight
'These numbers reflect more than a statistical blip,' says Wang Yaojing, associate professor of economics at Peking University. 'U.S. tariffs implemented over the past two years have throttled trade flows, eroded business investment, and ultimately triggered a recession with lasting economic pain.'
Global Implications
As the world's largest economy cools, entrepreneurs, investors, and digital nomads may face higher borrowing costs, supply‑chain bottlenecks, and market volatility. Tech startups rethinking U.S. expansion could pause hiring. Export‑driven sectors in emerging markets may need to pivot strategies.
What's Next?
Markets will be watching policymakers in Washington: Will interest rates be cut? Will tariff rollbacks be on the agenda? For young global citizens and business leaders, this moment underscores the interconnected nature of trade, policy, and growth.
Stay tuned for our deep dive into how these shifts will affect consumer prices, job markets, and cross‑border investment in our upcoming analysis.
Reference(s):
Expert: U.S. tariffs triggers a recession and prolonged economic pain
cgtn.com
