The US economy shrank by 0.4% in the first quarter of this year compared to the previous three months. This is partly because the United States exports less, the government spends less money and because of the chip shortage fewer cars can be produced. Many economists had even bet on economic growth.
Government spending fell mainly in the field of defence. According to the Bureau of Economic Analysis (BEA), the trade deficit has also widened, meaning the US imports far more than it exports.
Households still let the money roll. Americans have also invested more money in home renovations and made many other major purchases.
Economists interviewed by the news agency BloombergThe expectation was a growth of 0.2% compared to the previous quarter. In the fourth quarter of last year, the US economy grew by 1.7% compared to the previous quarter.
Source: NU
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
