As expected, US real gross domestic product (GDP) for Q1 2025 was negative, modestly surprising to the downside at -0.3% vs. -0.2%. This marks the first negative print since Q1 2022. The big news from Q1 GDP data: imports. “Imports surged 41.3% quarter-over-quarter annualized, driven by a massive 50.9% spike in goods imports as businesses scrambled to build up tariff-free stockpiles. While exports only rose 1.8%. The net effect was the largest drag on GDP by net exports on record to the tune of -4.8%,” said Garrett Melson, CFA®, Portfolio Strategist, Natixis Investment Managers Solutions.*
May 07, 2025