U.S. economic growth turned negative in the first quarter of 2025, with GDP contracting at an annual rate of 0.3, according to Barron's. The downturn follows 2.4 growth in the prior quarter and reflects a sharp reversal from 2024’s 2.8 expansion. The contraction came in below consensus expectations and was primarily attributed to a surge in imports and a decline in government spending. Business and consumer activity slowed amid policy uncertainty, marking a stark shift from the previous year’s momentum.