In a significant update from the Atlanta Federal Reserve, the GDPNow model for the first quarter of 2025 indicates a further contraction in the U.S. economy. Updated data, released on April 24, 2025, shows that the GDP growth forecast dropped to -2.5%, exacerbating concerns over an economic slowdown.
This revised figure marks a deeper contraction compared to the previous estimate of -2.2% announced earlier in the same quarter. The GDPNow model, an influential indicator of the health of the U.S. economy, highlights a widening gap between economic expectations and reality, suggesting that the country may face intensified economic challenges.
Amidst turbulent economic conditions, questions are mounting about potential responses from policymakers to mitigate this downturn. The negative adjustment in GDP growth poses significant implications for economic planning and may compel strategic shifts aimed at revitalizing the U.S. economy in the coming quarters.
