US GDP shrinks by 1.4% in the first quarter of 2022

Imports soared 17.7% while exports fell by 5.9%.

The Commerce Department reported that the US gross domestic product (GDP) declined at an annualized rate of 1.4% in the first quarter of 2022, marking the first drop since the beginning of the pandemic.

The shrinkage of the US economy likely stemmed from the soaring U.S. international trade deficit which was reported $113 million in the first quarter, in goods trade, versus $87 billion in same quarter, one year ago.

The trade deficit decreased the GDP by 3.2 percentage points. In addition to this, a decline in government spending and inventory stockpiles also contributed to the fall.