U.S. Economy Shrank 1.4% Last Quarter In Worst Showing Since C | Forbes

U.S. Economy Shrank 1.4% Last Quarter In Worst Showing Since Covid Recession, New GDP Estimate Shows

The economy last quarter posted its worst annualized showing since the pandemic-induced recession in 2020.

Despite economist expectations calling for growth of 1%, the U.S. economy shrank at an annual rate of 1.4% in the first quarter of 2022 — the first decline since the second quarter of 2020.

In the first quarter, a record wave of Covid-19 cases spurred by the omicron variant resulted in continued restrictions and business disruptions, while government assistance programs including forgivable loans to businesses and social benefits to households expired or tapered off — further preventing growth, the government said.

The decrease reflected broad declines in exports, government spending and business inventories, along with increased imports.