FX.co ★ US GDP Growth Set to Slow Sharply in Q1

The growth of the U.S. GDP is projected to have decelerated considerably in the first quarter of 2025, as increasing trade tensions began to impact the economic landscape. Economists expect that the GDP data for this period will reveal a growth rate of merely 0.4%, marking a significant decline from the 2.4% witnessed in the preceding quarter and the slowest pace recorded since the second quarter of 2022. It is anticipated that the trade deficit may have deducted up to 1.9 percentage points from the GDP, as businesses began to stockpile goods in anticipation of escalating costs. The upcoming report will not reflect the consequences of President Trump's extensive "Liberation Day" tariffs, enacted on April 2—with some being partially reversed a week later—but it will take into account the effects of previous import tariffs and the persistent uncertainty surrounding U.S. trade policy.