U.S. Economy Rebounds in Second Quarter 2025
The U.S. economy showed a strong rebound this spring, bouncing back from a weak first quarter that was largely attributed to the Trump administration’s escalating of trade wars. According to the Commerce Department, gross domestic product (GDP) expanded at a 3.3% annual pace from April through June, an upward revision from the initial 3% estimate released in July.
This follows a difficult start to the year, when GDP contracted by 0.5% in the first three months of 2025. Economists largely blamed this downturn on a surge in imports as businesses rushed to stock up on foreign goods ahead of Trump’s tariffs. Since imports are subtracted from GDP, this created a temporary drag on growth.
In the second quarter, however, the trend reversed, imports fell at a 29.8% annual pace, boosting GDP growth by over 5 percentage points. While this provided a temporary lift, some economists caution that it does not necessarily signal long-term economic strength.
President Donald Trump holds charts as he speaks about the economy in the Oval Office of the White House, Aug. 7, 2025, in Washington.
Q2 growth looked strong on paper, but most of it came from a one-time collapse in imports. Consumer spending is improving, but weak investment and shrinking government spending still suggest that more challenges may be ahead.
source: https://www.usnews.com/news/business/articles/2025-08-28/us-economy-grows-3-3-in-second-quarter-government-says-in-second-estimate-of-april-june-growth
No comments:
Post a Comment