The US economy slows its growth sharply and contracts 1.4% in the first quarter, fueling fears of a recession

The US economy slowed sharply and by surprise in the first quarter of 2022, according to data released Thursday by the Bureau of Economic Analysis.

The gross domestic product (GDP) decreased at an annual rate of 1.4% between January and March 2022. When compared to the last quarter of 2021, which registered a growth of 6.9%, this is a sharp slowdown, and the worst figures since the recession caused by the coronavirus pandemic in the second quarter of 2020.

Chicago will offer $500 a month for a year to 5,000 low-income families affected by the pandemic

April 26, 202201:43

In this first quarter of the year there was an increase in COVID-19 cases caused by the omicron variant and a decrease in aid payments due to the pandemic.

However, consumers and businesses continued to spend.

And this steady spending suggested the economy could continue to expand this year, even as the Federal Reserve plans to hike rates aggressively to fight rising inflation.

First-quarter growth was hampered mainly by slower restocking of goods in stores and warehouses and by a sharp drop in exports.

For the whole of 2021, the economy grew by 5.7%, the largest expansion in a calendar year since 1984.

With these new data, fears of a

Inflation is putting pressure on households as gas and food prices soar, borrowing costs rise and the global economy is rocked by the Russian invasion of Ukraine and lockdowns triggered by rising cases of coronavirus. coronavirus in China.