MassLive, May 2025
The U.S. economy slightly contracted in the first quarter, confirming that both economic weakness and federal revenue uncertainties are ongoing concerns for state budget writers. The size of the contraction in the state economy might have been even larger, according to one local expert. Real gross domestic product decreased at an annual rate of 0.3% in the first quarter of 2025, the U.S. Bureau of Economic Analysis concluded in newly released estimates. In the fourth quarter of 2024, real GDP had increased 2.4%.
“Compared to the fourth quarter, the downturn in real GDP in the first quarter reflected an upturn in imports, a deceleration in consumer spending, and a downturn in government spending that were partly offset by upturns in investment and exports,” the bureau, an agency of the U.S. Commerce Department, reported.
